WTO Rules U.S. Rice Wins Mexico Antidumping Case

WASHINGTON, November 29, 2005 — The Office of the U.S. Trade Representative today announced that the World Trade Organization (WTO) Appellate Body ruled in favor of the United States in its challenge to Mexico’s antidumping duties on U.S. long-grain white rice.

“The announcement is great news and resolves one of the many challenges facing rice farmers today,” USA Rice Federation Chairman Lee Adams said. “This report is the result of hours of work invested by U.S. Trade Representative Rob Portman and his staff, along with tremendous support from Secretary Mike Johanns and his staff at USDA. The rice industry thanks them for their continued efforts to enforce trade agreements.”

The Appellate Body’s decision upholds the WTO dispute settlement panel’s findings that Mexico’s antidumping duties and various provisions of its antidumping and countervailing duty laws are contrary to WTO rules. The body also agreed that Mexico improperly applied its antidumping measure to two U.S. exporters that were not dumping.

“Today’s decision confirms what the rice industry knew to be true all along: Mexico’s antidumping duties on U.S. rice violated their WTO obligations,” Adams said.

Mexico imposed antidumping duties on U.S. long-grain white rice in June 2002, and the United States requested a WTO dispute settlement panel in September 2003. The U.S. request challenged numerous violations of Mexico’s obligations under the WTO. The panel issued its final report on June 6, finding in favor of the United States, and Mexico appealed the ruling on July 20.

“This victory marks the conclusion of a long legal process in the WTO,” said John King, III, an Arkansas producer and chairman of the USA Rice Council, a member organization of the USA Rice Federation. “USA Rice members and staff invested considerable time, effort and resources defending market access in Mexico. We look forward to working with the administration to ensure that Mexico comes into full compliance,” King concluded.

Mexico is an important and growing export market for U.S. rice farmers. In 2004, Mexico imported rice from the United States valued at approximately $183 million.

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See USTR’s press release for more information: http://www.ustr.gov/Document_Library/Press_Releases/2005/November/United_States_Wins_WTO_Challenge_Against_Mexican_Rice_Duties_Trade_Laws.html.

Contact: Bob Cummings, (703) 236-1473, rcummings@usarice.com

USA Rice Federation is the national advocate for all segments of the rice industry, conducting activities to influence government programs, developing and initiating programs to increase worldwide demand for U.S. rice, and providing other services to increase profitability for all industry segments.