The United States and Mexico signed an agreement to end a long-running dispute over cement trade, boosting the rebuilding effort for US communities ravaged by hurricanes last summer. US Trade Representative Rob Portman's office said the accord ended all legal action at the World Trade Organisation brought by Mexico in response to anti-dumping duties imposed by Washington on its cement exports.
"This agreement will provide a needed increase in the supply of cement in the United States at a time of strong demand, as our Gulf Coast is accelerating its rebuilding following the devastation of hurricanes Katrina and Rita," Portman said in a statement.
The deal provides for up to three million tonnes of Mexican cement to be exported to the southern United States over the next three years, at a lower anti-dumping duty of three dollars a tonne compared to 26.28 dollars now.
Should President George W. Bush determine that a natural disaster warrants it, an extra 200,000 tonnes of Mexican cement can be imported at the same duty rate. That rate will then be scrapped at the conclusion of the agreement.
The United States imposed the hefty duties on Mexican cement in 1990, arguing it was being exported at prices below the fair market level to the detriment of US cement makers.