Search Keywords
Financial Times Wall Street Journal Economist
News Period From   To
News: 60885    Funds: $437    Pays: $524

Go Back to
News List
|
|
This News on
Daily Paywall
  Rated 68 | Views 349
Rate it | Share it 

World News
U.S., Mexico to Scrap Sugar Duties
From the Wall Street Journal of Sat, 20 Dec 2014 11:43:36 EST
 A new agreement will limit the amount of sugar Mexico can send the U.S.
A new agreement will limit the amount of sugar Mexico can send the U.S. Bloomberg News

NEW YORK—The U.S. and Mexico have struck a deal to scrap tariffs on imports of Mexican sugar, ending a trade dispute that rattled candy-makers over higher costs for their key ingredient.

The U.S. will suspend duties on Mexican sugar that were implemented earlier this year, and establish minimum prices “to guard against undercutting or suppression of U.S. prices,” the U.S. Commerce Department said in a statement late Friday.

The deal could help narrow the gap between sugar in the U.S. and the global market, where the sweetener is cheaper.

But the agreement also includes measures to limit the amount of sugar Mexico can send to the U.S., through export limits, drawing criticism from one food-industry group.

Unlike other sugar-producing countries like Thailand and Brazil, an unlimited amount of Mexican sugar had been able to enter the U.S. duty free under the North American Free Trade Agreement.

“With the stroke of a pen, these agreements dismantle the unrestricted free trade of sugar between the U.S. and Mexico since 2008 and undermine the core principles of the North American Free Trade Agreement,” said the Sweetener Users Association, which represents sugar-using companies, in a statement. “While sugar is but one commodity traded between our two countries, these suspension agreements set a horrible precedent by undoing trade flows that have been established over two decades after Nafta was first negotiated.”

In August, the government imposed preliminary tariffs on Mexican sugar imports following complaints by U.S. sugar growers, who had said that Mexican subsidies for its sugar industry allowed producers to flood the U.S. market with inexpensive supply, undermining American growers. Additional tariffs were announced in October.

The U.S. is the world’s fourth-largest sugar consumer and relies on imports—most of which come from Mexico—for about 25% of its supply.

Write to Leslie Josephs at leslie.josephs@wsj.com.



This article is provided by DailyPaywall.com, which is published and distributed by Paolo Cirio Ltd., registered in England, number 8188080. Registered Office: Suite 36, 88-90 Hatton Garden, City of London, EC1 N8PG, United Kingdom. Paolo Cirio Ltd. alone is responsible and liable for information and services provided through Daily Paywall’s newspaper and website.

The most relevant news can also help with your daily little expenses!




Earn Money
Offer Money
Buy Advertising
Buy Artwork Article

Similar Articles
Enjoy The Real Value of Information