PDF download

SourceMex PDF file 2017 right arrow Jun

Mexico, U.S. Reach New Agreement on Sugar Trade

LADB Article ID: 80322
Category/Department: Mexico
Date: 2017-06-14
By: Carlos Navarro

After weeks of difficult negotiations, the US and Mexico have agreed in principle to change the terms of sugar trade between the two countries. But the US and Mexican sugar industries both expressed reservations about the agreement reached between the negotiating teams led by US Commerce Secretary Wilbur Russ and Mexico’s Economy Secretary Ildefonso Guajardo. Under the accord, Mexico agreed to reduce the amount of refined sugar it ships to the US in exchange for an increase in shipments of raw sugar. The two sides agreed to modify an accord negotiated in 2015 after the US moved to establish quotas on imports of Mexican sugar. That decision followed a yearlong investigation that showed that Mexican sugar mills were flooding the US market with sugar at below-market prices. The two countries announced they had reached an agreement in principle that would keep the quota of Mexican sugar exports at current levels but change the ratio of refined and raw sugar that would be shipped north of the border. Mexico agreed to reduce the amount of refined sugar exports to 30% from 53% of the total quota. Unrefined sugar exports would increase to 70% from the current rate of 47%. By accepting the quotas, Mexico avoids tariffs on sugar, which would have been set at 43.9%.

This is only an abstract of the requested article. To obtain the full text, please purchase a subscription or inquire with your institution as to its subscription to LADB.