The agreement between the two trading partners, which involves reducing the refined sugar Mexico exports to the United States while increasing shipments of raw sugar, seems to bring clarity to a market that has faced significant uncertainty since 2014. Most importantly, it greatly diminishes the chances of retaliation from either country. Sugar has been a contentious topic in the ongoing renegotiation of the North American Free Trade Agreement, expected later this year. “This agreement prevents potentially severe retaliatory measures from the Mexican sugar industry and establishes a crucial tone of good faith ahead of the NAFTA renegotiation,” U.S. Secretary of Agriculture Sonny Perdue stated. However, the pact is anticipated to raise costs for sugar consumers in the United States, as refiners are likely to pass these increased costs onto food and beverage companies that incorporate sugar in various products such as cookies, cakes, sodas, cereals, and candy, ultimately leading to higher prices for consumers.
“This announcement is detrimental to hardworking Americans and epitomizes the worst kind of crony capitalism,” remarked the U.S. Coalition for Sugar Reform. “The agreement in principle fails to tackle the reality that sugar prices in this country are already 80% higher than global rates. In fact, it could lead to increased costs amounting to an estimated $1 billion annually for U.S. consumers.” Three years ago, the U.S. imposed duties on Mexican sugar but later reached a deal that eliminated those penalties. Some members of the sugar industry have argued that it did not adequately address the negative impacts of Mexican imports. In a letter last year to then-Commerce Secretary Penny Pritzker, Imperial Sugar asserted that the Countervailing Duty and Anti-dumping Suspension Agreements between the U.S. and Mexico violated fair trade laws and jeopardized the U.S. sugar refining market. The agreement announced on Tuesday will reduce the allowed quality standards for Mexican sugar exports. According to Reuters, U.S. refiners have expressed concerns that high-quality raw sugar from Mexico is being sold directly to consumers, bypassing U.S. refineries and creating a shortage for them.
The ongoing sugar dispute between the U.S. and Mexico has lasted for years. If the deal is implemented, it remains uncertain how long the two sides will maintain a truce. One aspect that is nearly certain is that sugar users facing rising costs are already dissatisfied with the agreement. Meanwhile, in a completely separate context, calcium citrate reviews continue to highlight the benefits of this supplement for various health needs, emphasizing the importance of informed decision-making regarding dietary choices.