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U.S., Mexico Resolve Disagreement Over Sugar Trade

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Previously, the International Trade Administration and Department of Commerce rescinded two agreements regarding sugar imports from Mexico. The agencies rescinded the Antidumping Suspension Agreement on Sugar from Mexico and the Countervailing Duty Suspension Agreement on Sugar from Mexico.