Amendments ensure agreements promote stability in U.S. sugar market
It took far longer and several false starts, but the U.S. and Mexico on Monday finally signed amendments to a sugar deal brokered between the two countries, the Commerce Department announced.
The signed amendment to the Countervailing Duty Suspension Agreement on Sugar from Mexico updates the ratio of quantities of refined and other sugar that Mexico can export to the U.S. and the polarity content of the two types of sugar. Secretary of Commerce Wilbur Ross and Mexico’s Undersecretary of Foreign Trade Juan Carlos Baker Pineda signed the finalized agreement on sugar July 3, following the announcement of a preliminary agreement June 6.
“All major stakeholders have endorsed this deal brokered by Secretary Ross and Secretary Ildefonso Guajardo. The amendments will ensure that the sugar suspension agreements continue to promote stability in the U.S. sugar market, in coordination with USDA’s sugar program,” the announcement said.
To accommodate the U.S. industry’s concerns, negotiators agreed to shorten by one month the period when Mexico could ship refined sugar when there are additional needs in the U.S. market, changing the start date to May 1.
Link to final amendments and fact sheet.
Link to amended antidumping agreement.
Link to countervailing duty agreement.
Comments: Officials and agricultural stakeholders from both countries worked hard on getting an agreement. U.S. sugar grower lobbyists pushed hard in making sure the agreement did not have any loopholes that in a previous agreement raised several hurdles to overcome. While no group got exactly what they wanted, this latest sugar trade suspension appears to be a win for U.S. sugar growers relative to decreasing in a major way concerns that too much sugar from Mexico would impact the operation of the U.S. government sugar program and a more balanced sugar sector. Mexico’s sugar industry also won because it can continue to count on the attractive U.S. market for the bulk of its exports. Meanwhile, a trade spat involving Mexico imports of U.S. high fructose corn syrup (HFCS) was avoided.
