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Plaintiff, Cabot Corporation, is contesting the International Tr
Plaintiff, Cabot Corporation, is contesting the International Trade Administration’s finding that the Mexican government’s provision of carbon black feedstock and natural gas to Mexican producers at below-market prices did not constitute a countervailable subsidy. Carbon black feedstock and natural gas are used in the production of paints, inks, plastics, and carbon paper. The feedstock is a by-product of crude oil and sold in Mexico through PEMEX, the government-owned oil company. Pursuant to a comprehensive economic development plan, PEMEX supplied the feedstock and natural gas at below-market prices to two Mexican producers of carbon black. The plaintiff, a U.S. producer of carbon black, contends that under U.S. law the actions of the Mexican government amount to a countervailable domestic subsidy. What is the correct legal test to determine if the supply of feedstock to Mexican manufacturers was a countervailable domestic subsidy? Cabot Corp. v. United States, 620 F. Supp. 722 (Ct. Int’l Trade 1985).
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