The U.S. and Mexico officially resolved a trade disagreement regarding sugar after formally signing an agreement June 30. The deal, initially unveiled June 6, will seek to prevent Mexico from dumping inexpensive sugar into the U.S. market.
American sugar refiners argued that Mexico was exporting low-cost refined sugar into the U.S. while simultaneously limiting exports of raw sugar into the country. Refiners argued that these actions detrimentally affected U.S. sugar operations, and the deal increased the price at which raw and refined sugar was sold to Mexican sugar mills. Additionally, it reduced the amount of Mexican refined sugar exports to the U.S., reported CBS News (July 3).
At the time of the deal's initial announcement, Reuters reported that Mexico would reduce the share of refined sugar it exports as part of a trade deal with U.S. officials. The U.S. Coalition for Sugar Reform opposed the terms, claiming they favor the interests of sugar producers above buyers and other firms. The American Sugar Alliance objected to the deal because it wants USDA to have final say on the type of sugar imported (June 6).
Previously, the International Trade Administration and Department of Commerce rescinded two agreements regarding sugar imports from Mexico. The agencies rescinded the Antidumping Suspension Agreement on Sugar from Mexico and the Countervailing Duty Suspension Agreement on Sugar from Mexico.
Chris is a business writer and market analyst that focuses on the Markets, Legal and Washington sections of the Food Institute Report. In addition, he assists in compiling data for various Food Institute publications throughout the year. He invites you to contact him via email at email@example.com to talk about anything food-related.
10 Mountainview Road
Upper Saddle River, NJ 07458
Food Institute reps are available to answer your questions
BECOME A MEMBER
For close to 90 years, The Food Institute has been the best "single source" for food industry executives, delivering actionable information daily via email updates, weekly through The Food Institute Report and via a comprehensive web research library. Our information gathering method is not just a "keyword search."