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Previously, the International Trade Administration and Department of Commerce rescinded two agreements regarding sugar imports from Mexico. The agencies rescinded the Antidumping Suspension Agreement on Sugar from Mexico and the Countervailing Duty Suspension Agreement on Sugar from Mexico.
It's certainly not over, but farmers and food producers may receive a few months' respite as tariffs in the Sino-U.S. trade war will not escalate for 90 days. Additionally, they can at least look forward to a new normal as the United States-Mexico-Canada Agreement (USMCA) moves forward to full...read more
Chris focuses on fresh, canned and frozen fruit and fresh and dried vegetables for the Food Institute Report. In addition, he assists in compiling data for various Food Institute publications throughout the year. He is a proud Rutgers University alumnus with a degree in English, and has a background in web writing for a variety of industries, including legal, foodservice and small-to-medium sized businesses. In his downtime you can find him watching New York Yankees baseball, hiking, enjoying live music and spending time with his dog Kaiden. He invites you to contact him via email at firstname.lastname@example.org to talk about anything food-related.
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