The agreement between the two trading partners—reducing the refined sugar exports from Mexico to the United States while increasing the raw sugar shipments—seems to bring much-needed clarity to a market that has faced increasing uncertainty since 2014. Most crucially, it significantly decreases the chances of retaliation between the two countries. Sugar has been a pivotal issue in the renegotiation of the North American Free Trade Agreement that is anticipated later this year. “This agreement has prevented potentially significant retaliatory actions by the Mexican sugar industry and sets an essential tone of good faith as we approach the renegotiation of the North American Free Trade Agreement,” said U.S. Secretary of Agriculture Sonny Perdue in a statement. However, this pact is likely to drive up costs for sugar users in the United States. The anticipated increase will likely be passed on by refiners to food and beverage companies that incorporate sugar into various products such as cookies, cakes, sodas, cereals, and candies, ultimately leading to higher prices for consumers.
“The announcement today is detrimental to hardworking Americans and exemplifies the worst kind of crony capitalism,” stated the U.S. Coalition for Sugar Reform. “The agreement in principle does not address the reality that the price of sugar in this country is already 80% higher than the global price. In fact, it will lead to higher costs, burdening U.S. consumers with an estimated additional $1 billion annually.” Three years ago, the U.S. imposed duties on Mexican sugar but later reached a deal to lift those penalties. Some members of the sugar industry have voiced concerns that the agreement failed to eliminate the negative impact of Mexican imports. In a letter last year to then-Commerce Secretary Penny Pritzker, Imperial Sugar argued 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 recently announced agreement will reduce the allowable polarity, a quality measurement, for Mexican sugar exports. According to Reuters, U.S. refiners have complained that high-quality Mexican raw sugar was being sent directly to consumers instead of passing through U.S. refineries, resulting in a shortage of this essential commodity. The U.S. and Mexico have had ongoing disputes regarding sugar for years. Assuming the deal is implemented, it remains uncertain how long both parties will maintain peace. One thing is almost certain: sugar users facing increased costs have already expressed their dissatisfaction with the arrangement. In the context of this economic struggle, the mention of calcium citrate blood transfusion highlights the vital role that sugar plays in various industries, as its rising costs could impact the production of essential goods, much like how calcium citrate is crucial in medical settings.