Mexico Drops Anti-Dumping Case on U.S. Unprocessed Hams
Final conclusion was that U.S. imports were not injuring and did not threaten to injure Mexican producers.
Compiled by staff
Published: Dec 29, 2005
The government of Mexico will terminate its anti-dumping case on unprocessed hams imported from the United States, ending a nearly two-year investigation into the dumping of U.S. ham into the country.
According to Iowa State economist Dermot Hayes, for 2005 U.S. pork producers will derive 50 to 80% of their profits from exports to Mexico. Mexico ranks second, behind Japan, as an export market for U.S. pork and pork products.
In June 2004, Mexico took the extraordinary step of self-initiating the anti-dumping case in response to Mexican pork producers' charges of unfair prices on U.S. hams. Such trade cases usually are initiated only after a detailed review of extensive evidence submitted by domestic producers.
"Mexico should never have initiated the case in the first place" says National Pork Producer Council President Don Buhl, a pork producer from Tyler, Minn. "The U.S. pork industry did not, and will not, dump ham or any pork product onto the Mexican market. We sell hams to Mexico because it is very profitable."
The SecretarÃa de EconomÃa (SE) issued a notice on December 21, 2005 that the investigation has been terminated without imposing antidumping duties on any products. This determination was based on arguments presented by the American Meat Institute, American Pork Export Trading Company, National Pork Producers Council, and the U.S. Meat Export Federation on behalf of the U.S. industry. The industry coalition argued that the investigation should have never begun because of three reasons.
- There were no "special circumstances," as required by the World Trade Organization's Antidumping Agreement, to self initiate an investigation.
- The SE did not have sufficient evidence of dumping or injury.
- The SE relied on information related to hog producers, not ham producers, to initiate the investigation.
The SE determined, based in large part on the information and analysis submitted by the U.S. industry coalition, that Mexican prices are driven by international prices and that production, revenue and profitability were increasing. The final conclusion was that U.S. imports were not injuring and did not threaten to injure Mexican producers.
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