U.S. Did Not Dump Rice, Mexican Government Concludes

ARLINGTON, VA, September 12, 2006 — The USA Rice Federation welcomed the announcement by the Mexican Ministry of Economy that U.S. imports of long-grain white rice were not made at less than fair market value. The decision, published yesterday in the Ministry’s official gazette, effectively negates the imposition of anti-dumping duties that had been levied on the U.S. rice.

“We are very pleased by this recognition from the Mexican government,” USA Rice Chairman Al Montna said today. “The decision puts our trade with Mexico is back on track, and we look forward to continuing to supply Mexican consumers with high-quality U.S. rice.”

The “imports of long-grain white rice from the United States of America were not made at dumped prices,” the Ministry’s report says. The Mexican government’s finding goes into effect today.

The Mexican rice industry in June 2002 filed a complaint with its government stating that U.S. long-grain white rice exports were damaging Mexican rice producers. The U.S. rice industry mounted a vigorous defense of that claim in Mexico but did not prevail, and the Mexican government imposed tariffs as a remedy. The United States then took Mexico’s action to a World Trade Organization (WTO) dispute panel, which on June 6, 2005, ruled that Mexico had unfairly imposed antidumping tariffs on U.S. rice. This decision was affirmed on appeal by Mexico in late 2005, and the U.S. government and industry has been calling on Mexico to lift the anti-dumping duties.

There was no discussion about how to recover previously paid duties. It is for the importers who paid the duties to explore avenues for refunds if there is a possibility for recovery.

“USA Rice would like to thank the U.S. Department of Agriculture and the office of the U.S. Trade Representative for their support,” USA Rice President and CEO Stuart Proctor said. “Their work was critically important to our success on this issue.”

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Contact: David Coia, (703) 236-1444

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.