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| Cement from Mexico allowed to enter the USA Officials from the Mexican and U.S. governments have reached an agreement in principle that will bring an end to the longstanding dispute over U.S. imports of Mexican cement. Under the agreement, U.S. restrictions will first be eased during a three year transition and eliminated completely in early 2009. Following a three-year transition period, the U.S. antidumping order will be revoked, allowing cement from Mexico to enter the U.S. without duties or other limits on volumes. During the transition, 3 million tons of Mexican cement will be allowed into the U.S. annually - an increase from current levels - and quantities will be permitted to increase as the market grows during the 2nd and 3rd years of the transition, subject to a 4.5% annual cap. Quota allocations will be specified on a regional basis. The transitional tariff will be lowered to $3/ton (from approximately $26/ton currently). As a result of the settlement, unliquidated historical duties associated with the antidumping order will be shared by the U.S. and Mexican cement industries. Cemex will receive approximately $100 million in cash from this settlement and will also eliminate approximately $65 million in liabilities. Cemex, a growing global building solutions company, has been heavily invested in the U.S. cement industry for many years, following the company's acquisition of Southdown in 2000 and U.K.-based RMC, which owned assets throughout the U.S., in 2005. The settlement comes not only at a time when key litigation decisions are soon to be issued, but also at a time when the U.S. is experiencing critical cement shortages. The resolution of the antidumping order will serve to enhance trade relations between the U.S. and Mexico and create benefits for U.S. consumers and the industries of both countries. Cemex commends the representatives of both the U.S. and Mexican governments for working so diligently to resolve this historical dispute. Recently, the Government of Mexico has been litigating the case at the World Trade Organization (WTO), the successor organization to the GATT, and a preliminary decision was due by the end of this month. That litigation is among the many aspects of the dispute that the agreement will settle. The agreement will also suspend the North American Free Trade Agreement (NAFTA) Panel proceeding concerning the U.S. International Trade Commission's decision in 2000 to allow the antidumping order to remain in effect. A decision in that case was expected later this year. write your comments about the article :: © 2006 Construction News :: home page |