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Plaintiff, Cabot Corporation, is contesting the International Tr

by | Nov 30, 2023 | questions

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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