Dear Secretary Canales:
On June 1, 2004, the Government of Mexico self-initiated an antidumping investigation on imports of unprocessed hams (pork legs) from the United States. I sent you a letter on Aug. 17, 2004, expressing my concerns regarding this self-initiated investigation.
Given the importance of this investigation to Iowa ham and hog producers, I continue to monitor this case. I was recently informed that Mexico might soon impose preliminary antidumping duties on imports of U.S. hams. For this reason, I am contacting you again.
I have major concerns that Mexico’s antidumping investigation on U.S. hams does not comport with Mexico’s obligations as a member of the World Trade Organization (WTO). The product underinvestigation is hams, but the Mexican government is investigating a separate industry, live hogs.For example, the dumping calculation in this investigation incorrectly bases production costs forhams on production costs for live hogs. Similarly, the injury analysis in this investigation focuses on live hog producers, and not on ham producers. In addition, while the Antidumping Agreement of the WTO provides that government authorities may self-initiate antidumping investigations if“special circumstances" are present, it appears that such “special circumstances" do not exist in thiscase.
My concerns regarding this investigation are heightened by the fact that the ham investigation was self-initiated by Mexico on the same day that Mexico terminated its antidumping investigation onU.S. pork. Mexican officials apparently admitted in the preliminary determination - issued almosta year and a half after the case was initiated - that the pork investigation was flawed, so that investigation was dropped. But Mexican authorities then turned around and self-initiated the antidumping investigation on U.S. hams, an investigation that appears at odds with Mexico’s WTO commitments. Mexico’s actions raise serious questions as to whether Mexico is willing to abide by its international trade obligations.
For these reasons, I respectfully request that Mexico terminate its antidumping investigation on hamsfrom the United States.
Sincerely,
Charles E. Grassley
cc: His Excellency Javier Usabiaga Secretary of Agriculture His Excellency Eduardo Sojo Office of the President
-30-
Source: Ranking Member’s News
