The agreement between the two trading partners—reducing the volume of refined sugar that Mexico exports to the United States while increasing shipments of raw sugar—provides much-needed clarity to a market that has faced growing uncertainty since 2014. Most importantly, it significantly reduces the chances of retaliation between the two nations. Sugar has been a contentious topic in the ongoing renegotiation of the North American Free Trade Agreement, which is expected to occur later this year. “The agreement has prevented potentially significant retaliatory actions by the Mexican sugar industry and sets an important tone of good faith leading up to the renegotiation of the North American Free Trade Agreement,” said U.S. Secretary of Agriculture Sonny Perdue in a statement. However, the pact is anticipated to raise costs for sugar consumers in the United States. These increased costs will likely be passed on by refiners to food and beverage companies that incorporate sugar in a range of products, including cookies, cakes, sodas, cereals, and candy. Ultimately, consumers will face higher prices.
“This announcement represents a poor deal for hardworking Americans and exemplifies the worst form of crony capitalism,” stated the U.S. Coalition for Sugar Reform. “The agreement in principle does not address the fact that sugar prices in the U.S. are already 80% higher than the global average. In fact, it will lead to increased prices, costing U.S. consumers an estimated $1 billion a year.” The U.S. imposed duties on Mexican sugar three years ago but later negotiated a deal that lifted those penalties. Some members of the sugar industry have argued that the agreement failed to mitigate the negative impacts of Mexican imports. In a letter to then-Commerce Secretary Penny Pritzker last year, Imperial Sugar claimed that the Countervailing Duty and Anti-dumping Suspension Agreements between the U.S. and Mexico violated fair trade laws and threatened the U.S. sugar refining industry. The agreement announced on Tuesday would reduce the allowed polarity, a quality measure, for Mexican sugar exports. According to Reuters, U.S. refiners have complained that high-quality Mexican raw sugar was going directly to consumers, bypassing U.S. refineries, and leaving them with insufficient supplies.
The U.S. and Mexico have been in conflict over sugar for years. Assuming the deal is enacted, it remains uncertain how long both sides will maintain a harmonious relationship. One thing that is almost certain is that sugar users, facing increased costs, have already expressed dissatisfaction with the agreement. In the midst of these developments, consumers may also be considering products like Citracal Calcium Plus D3 280 ct to supplement their diets and offset rising prices in other areas.