TheSenLive

Mexico says sugar exports to United States to remain duty


After months of deliberations, the US and Mexico announced an agreement, in principle, on sugar trade between the two countries.

The dispute comes as the two neighbors, along with Canada, are set to renegotiate the North American Free Trade Agreement (NAFTA). Importantly, when the export limit is increased pursuant to a request by USDA prior to April 1, such sugar shall be subject to the pre-April 1 70/30 split and the 99.2 polarity divide, an added protection for USA domestic refiners.

The U.S. government said a preliminary sugar deal with Mexico failed to garner the support of the American sugar-refining industry, though both sides expressed optimism the issues would be resolved soon. They have asked the US government to terminate the pact.

While this agreement is not yet being supported by the USA sugar industry, the government was positive that the Mexican side had agreed to every request made by the US industry to address the issues in the current system.

"'If you're a food company looking at long-term investment in the US and you're paying twice the world price, that's got to be a consideration going forward, ' said Mr. Pasco, who said sugar-using companies support about 600,000 jobs in the USA", the WSJ story continues. This results in a significant increase in the amount of raw sugar available to USA sugar refiners while ensuring that subsidized refined Mexican sugar imports do not injure US refiners.

"Today's announcement is a bad deal for hardworking Americans, and exemplifies the worst form of crony capitalism", the Coalition for Sugar Reform said.

Ross weighed in on efforts to reform NAFTA, telling Bartiromo, "NAFTA is an ancient agreement, it's really the first of the big trade agreements that the USA made and therefore it's a bit obsolete".

In return, Mexico has agreed to reduce the amount of refined sugar it sends to the United States, he said.

The agreement made significant revisions to the 2014 trade agreements between the two countries that suspended anti-dumping and countervailing duties totaling almost 80% on US imports of sugar from Mexico.

The pact reached between the two countries would require Mexico to reduce the share of refined sugar it exports to the USA and increase raw sugar exports.

"The agreement prevented potentially significant and retaliatory actions by the Mexican sugar industry and sets an important tone of good faith leading up to the renegotiation of the North American Free Trade Agreement", U.S. Secretary of Agriculture Sonny Perdue said in a statement.

In contrast, the Corn Refiners Association, which represents makers of corn syrup, supports the agreement which it said "maintained vulnerable export markets".

But a major sugar users group continued to oppose the trade agreement, as well as the USA sugar program that controls sugar imports and markets.

The agreement lifts the minimum prices for Mexican imports, which will likely be passed on by US sugar refiners to food companies and beverage and confectionary producers and ultimately to consumers. "The agreement in principle does not address the fact that the price of sugar in this country is already 80% higher than the world price. Thanks to his leadership, USA sugar interests have much stronger protections than the previous suspension agreements without threatening the $500 million in US corn sweetener exports to Mexico that support 4,000 U.S.jobs".

Last year, Mexico exported 1.1 million tonnes of sugar to the United States, some 40 per cent of which was refined. In fact, it will result in higher prices, costing US consumers an estimated $1 billion a year.

However, he said the U.S. sugar industry does not support the new deal.

Asked how long this would take, Ross said, "It should be days, not weeks or months".

Related Articles

  • Philadelphia police seek youths who filmed themselves sucker-punching mentally-challenged man

    Philadelphia police seek youths who filmed themselves sucker-punching mentally-challenged man

    The four individuals who were arrested face charges of aggravated assault, simple assault and reckless endangerment. A second older male follows up and punches the man in the side of the head while he attempts to leave.
    Elon Musk Just Revealed More Details About Two New Tesla Models

    Elon Musk Just Revealed More Details About Two New Tesla Models

    Contrary to the earlier reports, the Model Y will have an entirely new chassis and wouldn't share platform with Model 3 . The teaser images was presented at Tesla's shareholder press conference in Mountain View, California, on Tuesday.
    Huddersfield Town earns rich promotion

    Huddersfield Town earns rich promotion

    Huddersfield Town earned their place in the Prem, after their 0-0 match with Reading saw them take the PK shootout 4-3. Speaking to SkySports, David Wagner admitted even he didn't think promotion was possible at the start of the season.
  • Is white bread ok for some people?

    Is white bread ok for some people?

    Professor Jebb warned that the lack of control group in the trial meant there may be other contributing factors to the results. Some people may prefer brown bread while others favour white - but there has been little dispute that wholemeal is healthier.
    Coast Guard, partner agencies save 1, search for another off Salisbury

    Coast Guard, partner agencies save 1, search for another off Salisbury

    Coast Guard have been searching for the individual using a variety of methods, including jet skis, boats, and helicopters. But while attempting to rescue him, the boat was struck by an eight- to 10-foot breaking wave and lost sight of the man.
    India's Adani gives final approval for $4 billion Australia coal mine

    India's Adani gives final approval for $4 billion Australia coal mine

    Adani's decision "is a vote of confidence not just in the Queensland economy, but in Queensland people", she said. Federal Resources and Northern Australia Minister Matt Canavan said the decision had been worth the wait.
  • Former Penn State president gets jail time for failing to report Sandusky

    Former Penn State president gets jail time for failing to report Sandusky

    Paterno "could have made that phone call without so much as getting his hands dirty", Boccabella said. The head coach then notified Curley and Schultz, who discussed the matter with Spanier.
    Special Legislative Session Highlights K-12 Funding

    Special Legislative Session Highlights K-12 Funding

    But House Speaker Richard Corcoran promises it will be addressed. (Corcoran similarly views Latvala as purely transactional). The session is scheduled to start tomorrow and is due to last until Friday.
    Airstrikes on Islamic State-held Syrian city kill 12

    Airstrikes on Islamic State-held Syrian city kill 12

    The monitor recorded the coalition s deadliest month for Syrian civilians between April 23 and May 23, with 225 civilians killed. Turkey views the YPG as a terrorist group aligned with the PKK which has fought a bloody campaign in southeast Turkey since 1984.
  • La Crosse Kmart included in list of Sears company closings

    La Crosse Kmart included in list of Sears company closings

    On completion of the latest store closures, the company's store count will come down to 1,200 from 2,073 stores five years ago. Closings include: Traverse City (store 3009), West Branch (store 3864) and Cheboygan (store 9245).
    Fans petition to retire Tiote's Newcastle number

    Fans petition to retire Tiote's Newcastle number

    Following news of Tiote's death, his club had requested to postpone their next fixture against Meizhou Hakka. Tiote also made 53 appearances for Ivory Coast and was in the squad that won the 2015 African Nations Cup.
    Sehwag's two-line CV for India coach job stuns COA

    Sehwag's two-line CV for India coach job stuns COA

    Mumbai: Virender Sehwag has reportedly pulled off a Virender Sehwag as he applied for the post of Team India head coach. According to an Indian Express ( IE ) report, the BCCI has asked him to send an elaborated version of the application.

Comments