2015-03-22

Cato: Another Petty Dispute Involving U.S. Allies

Alliances tend to entangle America in confrontations that have little or no relevance to the security and liberty of the republic.  A prime example of that problem is the ongoing, bitter dispute between Japan and South Korea over some largely uninhabited rocks and the waters surrounding them.  Tokyo and Seoul cannot even agree on the correct name of the islands or the body of water.  Japanese call the islands Takeshima, while South Koreans insist on the name Dokdo.  For Japanese (and most of the world), the spits of rock are located in the Sea of Japan, but South Koreans hate that name and instead call it the East Sea.

As I discuss in a recent National Interest Online article, outsiders might be tempted to snicker at such a parochial feud, but it has significant policy implications.  U.S. officials are seeking to strengthen Washington’s alliances with both Japan and South Korea to counter China’s growing power in East Asia.  A key component of that strategy is to encourage closer bilateral military cooperation between Tokyo and Seoul.  The Takeshima/Dokdo dispute is a major impediment to such cooperation.  Beijing has been quick to take advantage of the animosity by actively courting South Korea.

Read more at http://www.cato.org/blog/another-petty-dispute-involving-us-allies

Cato: Audit the Fed: What Would Milton Friedman Say?

Senator Rand Paul (R-KY) introduced a bill (S.264) which is popularly known as “Audit the Fed” (ATF). The bill picked up 30 initial co-sponsors. Although the Fed is already extensively audited in the accounting sense of the term, the ATF bill would expand the scope and scale of Fed auditing. Indeed, monetary policy decisions, which have been exempt from any sort of “auditing” since 1978, would see their auditing exemption lifted if the bill becomes law.

There is popular support for the idea that the Fed should be audited. More than three-quarters of registered voters would give the general idea of auditing the Fed a green light. It’s no surprise, then, that there has been bipartisan support for similar proposals in the past. However, none of these have become law because the push-back from Fed officials and other “experts” has been strong. Today is no different, with the Fed and the Obama White House all singing the same tune: “It’s Dangerous.”

The real issue at stake is whether the Fed should be independent. The opponents of the ATF bill naturally think that the law would imperil the Fed’s autonomy and that this would be objectionable.

Read more at http://www.cato.org/blog/audit-fed-what-would-milton-friedman-say

Cato: Another Fishy Regulation

All across the globe, people see the United States as a land of opportunity and dream of making their way here to work hard and enjoy the prosperity that our system of laws helps provide. Cindy Vong made that dream a reality by emigrating from Vietnam, becoming a U.S. citizen, and starting her own nail salon in Gilbert, Arizona. Thanks to a state occupational-licensing scheme, however, Ms. Vong may no longer be free to pursue her vision of happiness.

The Arizona Board of Cosmetology—yes, that’s an actual entity—got wind that Ms. Vong’s spa offered a treatment that uses small fish to exfoliate dead skin from the feet. This is a perfectly safe practice popular in East Asia and the Middle East. Learning that the Board intended to apply its exfoliation-instrument sterilization standards to her fish—how does one sterilize a fish?—Ms. Vong volunteered her spa as a test project until the Board was able to revise its existing rules to address this increasingly popular treatment. Without so much as bothering to evaluate whether the fish treatment is unsafe—there is no such evidence anywhere—the Board ignored her request and, summarily concluding the treatment unsafe, shut down Ms. Vong’s business. So much for “Land of the Free.”

Represented by our friends at the Goldwater Institute, Ms. Vong fought back, bringing a constitutional challenge against the Board’s action all the way to Arizona’s high court. Unfortunately, that court deferred to the Board’s “safety” concerns, finding there to be a “reasonably conceivable state of facts that could provide a rational basis” for the regulation. In other words, because a state-empowered group of Ms. Vong’s competitors offered a better-than-completely-ridiculous pretext for telling her how to run her business, the court would entertain no legal challenge.

Read more at http://www.cato.org/blog/another-fishy-regulation

Cato: Continuing Constitutional Difficulties in Implementing the Voting Rights Act

Sue Evenwel is a citizen of the United States and of the state of Texas. She is a registered voter in Titus County and regularly votes in local and state elections. How is it, then, that Ms. Evenwel’s vote in a Texas state senate race is worth only about half that of certain other voters? The answer lies somewhere at the intersection of bad law and even worse politics that the modern Voting Rights Act has become.

The VRA, as you may recall, was the heroic civil rights legislation that finally put a stop to the most blatant and invidious forms of racial discrimination impairing the fundamental right of racial minorities to vote. It has been several decades now since this important and proud work but now, sadly, the heroic VRA has lived long enough to see itself become a villain. As Cato has warned before—in our amicus briefs in Perry v. Perez and Shelby County v. Holder—the courts are at a “bloody crossroads” when interpreting what have become the conflicting mandates of the VRA.  To give one example, the courts have found that Section 2 requires race-based redistricting to prevent loss of minority voting power, while at the same time, the Fifteenth Amendment (and the currently inoperable VRA Section 5) prohibits discrimination in voting on the basis of race.

The conflicts go on: as Ms. Evenwel’s case demonstrates, Section 2’s requirements clash with the Fourteenth Amendment’s equal-protection guarantee. In response to the pressures of satisfying Section 2, Texas adopted a court-drawn, interim redistricting plan for state senate districts. To ensure that racial minorities’ voting power isn’t diluted, however, the plan instead dilutes the voting power of rural voters by equalizing “total population” among districts instead of using the “citizens of voting age population” (CVAP) metric. The result of this choice is that the high number of non-voting-eligible immigrants—whether legal or illegal—in Texas’s urban centers wildly inflates the voting power of the relatively fewer eligible voters who also reside in those urban districts.

Read more at http://www.cato.org/blog/continuing-constitutional-difficulties-implementing-voting-rights-act

Cato: Russia Befriends North Korea to Punish U.S. Over Ukraine

Russian President Vladimir Putin has reached out to one of the poorest and least predictable states on earth: North Korea. So far, the new Moscow-Pyongyang axis matters little. But the effort demonstrates that Russia can make Washington pay for confronting Moscow over Ukraine.

The United States and the Soviet Union divided the Korean peninsula at the end of World War II. Moscow’s zone became the Democratic People’s Republic of Korea, better known as North Korea, while the U.S. zone became the Republic of Korea, better known as South Korea. But North Korea denounced Moscow in 1991 after it recognized South Korea. Since then, Russo-North Korean relations have been minimal.

In contrast, Seoul provided investment and trade in abundance. After President Vladimir Putin held a summit with South Korean President Park, Russia leaned toward Seoul in denouncing the North’s missile and nuclear programs.

However, Moscow is rebalancing its position. Last year North Korea and Russia exchanged high-level visitors and inked a number of economic agreements. Russia indicated its willingness to host a summit. Both governments talked of “deepening” economic and political ties.

Read more at http://www.cato.org/blog/russia-befriends-north-korea-punish-us-over-ukraine

Cato: The Equal Protection Clause Requires Giving Marriage Licenses to Same-Sex Couples

Two years ago in United States v. Windsor, the Supreme Court held that the Constitution forbids the federal government from treating same-sex marriages differently than opposite-sex marriages. The Court’s majority, writing through Justice Anthony Kennedy, recognized that discriminating against lawfully wed same-sex couples violates the Fifth Amendment’s “prohibition against denying to any person the equal protection of the laws,” a prohibition which the “equal protection guarantee of the Fourteenth Amendment makes … all the more specific and all the better understood and preserved.” Because Windsor challenged only the federal Defense of Marriage Act, no state marriage laws were directly affected.

Given the Court’s broad language, however—especially its direct reference to the Equal Protection Clause—many (including Justice Antonin Scalia in dissent) predicted that the opinion’s reasoning would eventually be used to strike down state laws and constitutional provisions that deny marriage licenses to same-sex couples. They were right. Windsor served as the basis for dozens of challenges to marriage laws across the country, initially resulting in an unbroken series of victories for marriage equality in federal courts, which the Supreme Court declined to review.

Finally, the U.S. Court of Appeals for the Sixth Circuit (which covers Kentucky, Michigan, Ohio, and Tennessee) issued a contrary ruling, holding that “the people who adopted the Fourteenth Amendment understood it to require the States to change the definition of marriage.” The Supreme Court could thus no longer delay taking up the marriage debate.

Read more at http://www.cato.org/blog/equal-protection-clause-requires-giving-marriage-licenses-same-sex-couples

2015-03-21

Cato: The Grapes of Wrath: California Raisins Are Back at the Supreme Court

When Marvin Horne told the United States Raisin Administrative Committee (yes, there’s a raisin administrative committee) that he wasn’t going to turn over nearly 30 percent of his crop to the government in exchange for nothing, he probably didn’t expect his case would go to the Supreme Court—twice. That little act of civil disobedience was thirteen years ago, and the Hornes now stand on the precipice of vindicating an important constitutional right—the Fifth Amendment right not to have your property taken without just compensation—as well as putting a wrench in the gears of what Justice Elena Kagan called “the world’s most outdated law.”

Like much of our agricultural policy, the Raisin Administrative Committee (RAC) is a relic of New Deal-era cartelization schemes. Trying to understand the logic behind American agricultural policy is like trying to find the logic in a Marx Brothers movie—it can’t be done and you’re better off just sitting back and laughing at the antics. Yet our agricultural policy has real-world effects on farmers like the Hornes, who are subject to the whims of the RAC as it tries to stabilize the price and supply of raisins. Sometimes the RAC pays for the raisins it takes, and sometimes not. In 2002-2003, the RAC offered far less than the cost of production for 47 percent of the Hornes’ raisins, and in 2003-2004 they offered nothing for 30 percent of the raisins. The Hornes had had enough, and they refused the order, arguing the seemingly simple point that the confiscation would be a taking without just compensation under the Fifth Amendment.

Read more at http://www.cato.org/blog/grapes-wrath-california-raisins-are-back-supreme-court

Cato: The Fatal Conceit of the “Right to be Forgotten”

Intelligence Squared hosted a lively debate last week over the so-called “Right to be Forgotten” embraced by European courts—which, as tech executive Andrew McLaughlin aptly noted, would be more honestly described as a “right to force others to forget.”  A primary consequence of this “right” thus far has been that citizens are entitled to demand that search engines like Google censor the results that are returned for a search on the person’s name, provided those results are “inadequate, irrelevant, or no longer relevant.”  In other words, if you’re unhappy that an unflattering item—such as a news story—shows up as a prominent result for your name, you can declare it “irrelevant” even if entirely truthful and ask Google to stop showing it as a result for such searches, with ultimate recourse to the courts if the company refuses.  Within two months of the ruling establishing the “right,” the company received more than 70,000 such requests.

Hearteningly, the opponents of importing this “right” to the United States won the debate by a large margin, but it occurred to me that one absolutely essential reason for rejecting this kind of censorship process was only indirectly and obliquely invoked.  As even the defenders of the Right to be Forgotten conceded, it would be inappropriate to allow a person to suppress search results that were of some legitimate public value: Search engines are obligated to honor suppression requests only when linking some piece of truthful information to a person’s name would be embarrassing or harmful to that person without some compensating benefit to those who would receive the information.  Frequent comparison was made to the familiar legal standards that have been applied to newspapers publishing (lawfully obtained) private information about non-public figures. In those cases, of course, the person seeking to suppress the information is typically opposed in court by the entity publishing the information—such as a newspaper—which is at least in a position to articulate why it believes there is some public interest in that information at the time of publication.

Read more at http://www.cato.org/blog/fatal-conceit-right-be-forgotten

Cato: President Obama’s Dismissal of Drug Reform

Yesterday President Obama seemed to make light of the push for drug reform (again), arguing that young Americans should put it at the bottom of their priority list in favor of issues like climate change and war:

"I understand this is important to you but, you know, you should be thinking about climate change, the economy, jobs, war and peace. Maybe, way at the bottom, you should be thinking about marijuana."

As a member of that millennial generation, I’d like to ask: why?

Setting aside the strange suggestion that environmental and peace activism are somehow mutually exclusive with opposing the drug war, I would suggest that Americans have much more influence over drug policy than we have over the global climate or the U.S. government’s penchant for warmaking.

Despite the President’s insinuations, the fight to end the drug war isn’t just a crusade by young stoners to get high without worry of arrest.  Prohibition doesn’t work.  It didn’t work in the 1920s when alcohol prohibition turned entire American cities over to organized crime, and it doesn’t work in 2015.

Read more at http://www.cato.org/blog/president-obamas-dismissal-drug-reform

Cato: Police Body Cameras Are Not a Panacea

Las Vegas police officer Richard Scavone is facing a misdemeanor battery charge after body camera footage revealed that he had, according to Undersheriff Kevin McMahill, used excessive and unreasonable force while arresting a woman for loitering for prostitution in January.

Scavone’s lawyer said that his client, who is suspended with pay, was one of the 400 volunteers taking part in the Las Vegas Metropolitan Police Department’s body camera study. Footage of the incident has not been released, as it is being used in the ongoing investigations conducted by the Clark County District Attorney and the Las Vegas Metropolitan Police Department.

This is not the first time that police body cameras have captured alleged excessive force. In January, prosecutors in Albuquerque, New Mexico said that they would be pursuing murder charges against two police officers who in March 2014 shot and killed James Boyd, a homeless paranoid schizophrenic camping in the Sandia Mountains. The killing was filmed by a helmet camera worn by one of the officers at the scene. Speaking about the case, Bernalillo County District Attorney Kari Brandenburg said, “We have evidence in this case to establish probable cause we didn’t have in other cases.”

Read more at http://www.cato.org/blog/police-body-cameras-are-not-panacea

Cato: Putin Returns

In a piece published today over at Townhall, I talk about Vladimir Putin’s recent disappearance from the public eye, and why it wasn’t as big a deal as you might think.

The rumors surrounding his ten-day disappearance ranged from the sublime to the ridiculous. Kremlin spokesman Dmitry Peskov was kept busy, scotching speculation that the Russian leader was ill, quashing reports of a power struggle within the Kremlin, and refuting assertions that Putin had been absent to attend the birth of his new child.

When Putin finally reappeared on Monday, he waved away all questions about his absence, simply noting that “life would be boring without gossip.”  We’ll probably never know where Putin was for those ten days, though his pallor implied a minor illness. Given the consistent unwillingness of the Kremlin to divulge information about Putin’s personal life, the whole thing may have been nothing more than the flu.

But it’s worth asking why Putin’s disappearance caused such a media furor. Putin’s centrality to the Russian political system is so well-accepted that commentators and policymakers routinely treat Putin himself as sole representative of the Russian state, psychoanalyzing the man for insight into Russian foreign policy choices. His disappearance, therefore, implied the possibility of chaos in Russia.

Read more at http://www.cato.org/blog/putin-returns

Cato: DEA ‘Cold Consent’ Encounters Constitute Federal Stop-and-Frisk

Over at Forbes, the Institute for Justice’s Nick Sibilla details a new report from the Department of Justice concerning the Drug Enforcement Administration’s practice of cold-stopping travelers at airports, bus stations, and train stations and asking to search their property looking for forfeitable assets.

"Federal drug agents may be racially profiling and unjustly seizing cash from travelers in the nation’s airports, bus stations and train stations. A new report released by the Office of the Inspector General for the U.S. Department of Justice examined the Drug Enforcement Administration (DEA)’s controversial use of “cold consent."

In a cold consent encounter, a person is stopped if an agent thinks that person’s behavior fits a drug courier profile. Or an agent can stop a person cold “based on no particular behavior,” according to the Inspector General report. The agent then asks the people they have stopped for consent to question them and sometimes to search their possessions as well. By gaining consent, law enforcement officers can bypass the need for a warrant.

Read more at http://www.cato.org/blog/dea-cold-consent-encounters-constitute-federal-stop-frisk

2015-02-14

Cato: Washington Should Celebrate Valentine’s Day by Dumping Allies


It’s hard to get out of a bad relationship. People can’t admit that it’s time to say goodbye.

Countries have the same problem. The United States has spent decades collecting allies, like many people accumulate Facebook “Friends.”

After Valentine’s Day, Washington should send the equivalent of a “Dear John” letter to at least a half-dozen foreign capitals. Where to start:

 

Saudi Arabia

Saudi Arabia and America have little in common other than commerce in oil. Essentially a totalitarian state, the monarchy plunders people, brutalizes political opposition, suppresses religious expression, and even exports Sunni tyranny.

But no alliance is necessary for the two states to cooperate when their interests coincide. It’s time to send Riyadh a text message breaking up. The two governments still should cooperate where appropriate, but the U.S. military no longer should act as an inexpensive bodyguard for the al-Saud family.

 

South Korea

The United States was drawn into war in Korea during the Cold War. Then American troops were required on the peninsula until South Korea gained both political stability and economic development.

By the 1980s the South had raced well ahead of the North economically. Today South Korea enjoys a 40–1 economic lead, 2–1 population edge, vast technological advantage, and overwhelming diplomatic support.

The South can defend itself. Other forms of cooperation could be conducted without a “Mutual Defense Treaty” that would be mutual in name only.

Read more at http://www.cato.org/blog/washington-should-celebrate-valentines-day-dumping-allies

2015-01-03

Cato: Supreme Court Should Remove Kafka-esque Burden to Vindicating Property Rights

In order to create better telecom infrastructure, New York state law gives private telecom firms the power to take private property in exchange for just compensation. Verizon used this power to build terminal boxes on thousands of pieces of private property, thus essentially permanently occupying a part of the properties. Verizon is one of a few companies that enjoy this extraordinary, state-granted privilege to build things on other people’s property without their permission.

Those companies, however, must compensate the owners (at least theoretically) for these sorts of takings of property. Kurtz v. Verizon New York, Inc. arises from a putative class action alleging that Verizon failed to compensate 30,000-50,000 property owners for building terminal boxes on their property. Although Verizon is required to give property owners their “full compensation rights,” the plaintiffs argue that the company continuously flouts this requirement “as a matter of corporate policy and practice,” thus violating both the plaintiffs’ rights to procedural due process—for example, by not even notifying them that their property was being taken—and their Fifth Amendment rights to not have their property taken for public use without just compensation.

The U.S. Court of Appeals for the Second Circuit, however, ruled that the plaintiffs couldn’t proceed with their claims because of a case called Williamson County Regional Planning Commission v. Hamilton Bank of Johnson City (1985), in which the Supreme Court ruled that plaintiffs with takings claims have to seek relief from state courts before proceeding with a federal claim. Otherwise, the case will be dismissed for being not “ripe”—not ready for a federal court to hear the case.

Read more at http://www.cato.org/blog/supreme-court-should-remove-kafka-esque-burden-vindicating-property-rights

Cato: Police Misconduct: The Worst Case in October

Over at Cato’s Police Misconduct website we have identified the worst case for the month of October.

The worst police misconduct of October goes to the officers who shot David Hooks in his own home during a drug raid based on an invalid warrant and the tip of an informant who was allegedly high on meth.  The informant, Rodney Garrett, had just stolen a vehicle from the Hooks’ home when he was either arrested or turned himself into the police (reports vary).  Garrett told police that the 20g bag of meth he had had been stolen from Hooks’ pickup truck.

That same night, the Laurens County Drug Unit pushed through a warrant based primarily on Garrett’s word, and at 10:55 pm, executed a no-knock warrant despite the fact that the warrant did not authorize one–at a home that the police knew had just previously been burglarized two nights earlier. Hooks’ wife Teresa saw armed, hooded figures in black rushing towards the back door and woke her husband, thinking the burglars had returned.  David Hooks got his gun, and when the SWAT team knocked in the back door without announcing their presence, he didn’t even have the opportunity to get a shot off before officers fired between 16 and 18 rounds, killing him.

Read more at http://www.cato.org/blog/police-misconduct-worst-case-october-0

Cato: U.S. Should Talk to North Korea, Whoever Is in Charge

Power is like quicksilver.  It often slips through the fingers of those attempting to grasp it.  Who is in power in North Korea?  Maybe 31-year-old Kim Jong-un.  Maybe not.

The Democratic People’s Republic of Korea’s Kim disappeared from public view for 40 days.  On his return Pyongyang only released undated still photos.

There’ve been no untoward troop movements or party conclaves in the North, though some other signs seemed conflicting.  Whoever reigns, there is little reason to hope for nuclear disarmament.

To the contrary, the North appears to be increasing production of fissile material, moving ahead on ICBM development, and upgrading rocket launch facilities.  Even a seemingly secure Kim, the “Great Successor” whose father concocted the North’s “military first” policy, would hesitate challenging the armed services by trading away its most important weapon.

Yet there are signs of change elsewhere.  The economy appears to be growing, with more consumer goods evident, especially in Pyongyang.

Read more at http://www.cato.org/blog/us-should-talk-north-korea-whoever-charge

Cato: Should Republicans Restore the Judicial Filibuster?

When Republicans take control of the Senate in January, should they revive the judicial filibuster that Democrats instituted in 2003 when George W. Bush was president, but ended last November when Republicans were filibustering Obama nominees? That heads-I-win-tails-you-lose question probably answers itself, but the background is a bit more complicated.

In fact, in a post I rushed into print yesterday morning I mangled some elementary filibuster facts, which I partially corrected late in the day after a reader kindly alerted me to the error. I’m tempted to say that an impostor was writing under my name, but the better explanation perhaps is too little sleep from following overnight election returns. In any event, it turns out that Harry Reid, having gone “nuclear” by ending the judicial filibuster a year ago is in no worse shape going into the next two years, as I’d initially implied, than he would have been had he kept it in place. It’s after that, if there’s a Republican president, that he’ll no longer have the filibuster at hand.

So what’s going on here? Let’s start at the beginning. Article I, section 5 of the Constitution says that “Each House may determine the Rules of its Proceedings.” As students of the subject know, those rules can be arcane. And they change, about which there are also rules. The filibuster is a case in point. It’s nowhere in the Constitution, and it’s changed over the years. On the merits, a good case can be made on either side of the practice. In general, it can keep bad (or good) laws from being enacted—or bad (or good) laws from being removed. In the abstract, therefore, it’s a wash. Empirically, it depends on the history of its use—and where you sit.

Read more at http://www.cato.org/blog/should-republicans-restore-judicial-filibuster

Cato: Can a State Punish You for Advertising Your Business Without a License?

Under Ohio law, it isn’t illegal to buy gold, it isn’t illegal to sell gold, and it isn’t illegal to talk about buying and selling gold. But—and it’s a significant “but”—if you talk about buying gold, you’re not allowed to actually buy any. At least not without a license.

That’s right: in Ohio, it’s illegal for anyone who advertises a willingness to buy gold to do so without a license. Obtaining and maintaining that license isn’t easy, or cheap. Licenses must be renewed every year, and license holders have to make daily reports to the police detailing their purchases. This law creates a two-tiered system: dealers who have complied with the onerous licensing regime may freely advertise their businesses, while others can’t so much as put up a sign reading “We Buy Gold” without facing criminal prosecution and fines of up to $10,000 per transaction.

Read more at http://www.cato.org/blog/can-state-punish-you-advertising-business-without-license

Cato: Yes, Florida, the Constitution Protects Property Rights

David and Susan Kentner own residential lots along San Carlos Bay in Sanibel, Florida. Because their property is along the high-tide line, the Kentners enjoy an age-old common-law right to build docks over the water abutting their property, subject to reasonable regulation. But Sanibel passed an ordinance forbidding the Kentners and others from taking advantage of this common-law right. The city claimed that the ordinance was necessary to protect seagrass, which it called an “invaluable natural resource.”

Whether or not seagrass is invaluable, the city passed the ordinance without considering whether seagrass was actually present in the areas subject to the ordinance and whether modern technology could effectively be used to avoid harming the seagrass. Moreover, there is evidence that the city passed the ordinance in order to satisfy the aesthetic preferences of certain interest groups and to enhance the property values of other dock-holders. On top of that, in 2006 the city issued itself an exemption to build a dock in San Carlos Bay, explaining that it should be allowed to build a dock because no seagrass was found on the site.

Read more at http://www.cato.org/blog/yes-florida-constitution-protects-property-rights

2015-01-02

Cato: U.S.-Mexico Sugar Agreement: A Tribute to Managed Markets

The U.S. Department of Commerce (DOC) announced Oct. 27 that it had reached draft agreements with Mexican sugar exporters and the Mexican government to suspend antidumping and countervailing duty (AD/CVD) investigations on imports of sugar from that country.  Commerce has requested comments from interested parties by Nov. 10, with Nov. 26 indicated as the earliest date on which the final agreements could be signed.  Given the obvious level of consultation by governments and industries on both sides of the border leading up to this announcement, it’s reasonable to presume that the agreements will enter into effect within a few weeks.

Suspension agreements that set aside the AD/CVD process in favor of a managed-trade arrangement are relatively rare.  They sometimes are negotiated when the U.S. market requires some quantity of imports, and when the implementation of high AD/CVD duties would be expected to curtail trade severely.  This would have been the case, assuming the duties actually had entered into effect.  However, as this recent blog post indicates, it’s not at all clear that the U.S. International Trade Commission (ITC) would have determined that imports from Mexico were injuring the U.S. industry.  A negative vote (a vote finding no injury) by the ITC would have ended these cases and left the U.S. market open to imports of Mexican sugar.

Read more at http://www.cato.org/blog/us-mexico-sugar-agreement-tribute-managed-markets