In a plea to 23 U.S. cement producers unified by the common goal of maintaining and enforcing the 15-year-old anti-dumping order on Mexican cement, the Associated General Contractors of America called for member companies to withdraw a complaint that triggered the current duties imposed on powder from south of the border.

“Construction activity is outpacing even last year's record pace, but U.S. cement suppliers cannot keep up with demand,” says AGC CEO Stephen Sandherr in a July 14 statement. “If the STCC companies agreed to suspend the anti-dumping duty, Mexican cement could reach Gulf Coast and border states in days, keeping construction projects on track, avoiding unnecessary delays and possible layoffs.”

According to recent reports from AGC and Portland Cement Association, 28 states and the District of Columbia are documenting shortages, allocations and delivery delays, up from 23 states at the end of May.

STCC responded by pointing the finger at Mexican-based Cemex for spearheading the call to suspend the duties. “It's very concerning that a few American businesses and industry groups have been recruited, under the guise of a cement supply crisis, to help Cemex remove the duty imposed on its illegally dumped cement,” says Joe Dorn, a Washington-based attorney representing the organization. “How can the AGC and other groups criticize the United States for imposing dumping duties on Mexican cement to offset illegal dumping that threatens American jobs, when Mexico does not permit imports of fairly traded cement into its market?”

Dorn claims that Cemex is protecting its home market by forcing the Mexican government to reject any imported cement bound for Mexico. “These groups' [like AGC] positions ignore the fact that Mexico has a protectionist wall in place to protect Cemex and that Cemex continues to illegally dump cement into the United States,” he contends. “They also ignore the fact that lifting the duty will not alleviate the short-term supply issues. They should realize that the duty doesn't prohibit cement being imported from Mexico, it only insures that it is fairly priced.”

According to STCC, imports of cement from Mexico actually increased 68% from 2003 to 2004, and another 136% in the first four months of this year compared to the same period in 2004. The group also points out that most of the states listed as having “tight” supplies are outside the Southern Tier states and that transportation costs to those locating would prohibitively raise prices.

Meanwhile, AGC continues to urge Commerce Secretary Gutierrez to conclude agreements with these domestic cement producers and welcomed the involvement of Florida Governor Job Bush, who wrote a letter to the Secretary recently stating, “Domestic cement producers are operating at nearly full capacity, and cannot keep up with the continually rising cement demand… A ready supply of cement from a reliable source will have enormous economic impact, especially for a state facing the daunting challenge of rebuilding after costly natural disasters.”