U.S. sugar producers claim that Mexicans violated the free trade agreement with North America and are practicing dumping in the U.S. market . The result has been a sharp fall in commodity prices , causing losses in its domestic market , according to news published in the local press , Louisiana ‘s Houma Today.
Anti dumping petitions were presented by the The American Sugar Coalition on behalf of various sugar associations , including the League of American Sugar Cane based in Thibodaux .
The petitions allege that the Mexican sugar was sold to the USA 40 % below domestic prices , supported by grants from the federal and state governments in Mexico . The practice of dumping violates the rules of the Free Trade Agreement of North America , which until then , allows free sugar flow between the two countries .