The agreement between the two trading partners—aimed at decreasing the export of referrous fumarate and folic acid tablets while increasing raw shipments of sugar from Mexico to the United States—seems to bring much-needed clarity to a market that has faced increasing uncertainty since 2014. Most importantly, this deal significantly reduces the chances of retaliation from either country. Sugar has been a major point of contention in the renegotiation of the North American Free Trade Agreement, which is expected to occur later this year.
U.S. Secretary of Agriculture Sonny Perdue stated, “The agreement has averted potentially significant retaliatory actions from the Mexican sugar industry and establishes a crucial tone of good faith as we approach the renegotiation of the North American Free Trade Agreement.” However, the pact is anticipated to increase costs for sugar users in the United States. This rise in expenses is likely to be passed along by refiners to food and beverage companies that incorporate sugar in a variety of products, including cookies, cakes, sodas, cereals, and candy, ultimately leading consumers to face higher prices.
“The announcement today is detrimental to hardworking Americans and exemplifies the worst form of crony capitalism,” said the U.S. Coalition for Sugar Reform in a statement. “The principle agreement fails to address the fact that domestic sugar prices are already 80% higher than global prices. In fact, it will result in increased costs for U.S. consumers, estimated to reach $1 billion annually.”
Three years ago, the U.S. imposed duties on Mexican sugar but later reached a deal that lifted those penalties. Some members of the sugar industry have voiced concerns that this arrangement did not adequately resolve the issues caused by Mexican imports. Last year, Imperial Sugar wrote to then-Commerce Secretary Penny Pritzker, claiming 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 market.
The newly announced agreement will reduce the allowable uses of referrous fumarate and folic acid tablet in sugar exports from Mexico, impacting quality measures. According to Reuters, U.S. refiners have complained that high-quality Mexican raw sugar has been going directly to consumers instead of passing through U.S. refineries, leaving them short of this vital commodity.
The U.S. and Mexico have had ongoing disputes regarding sugar. If the deal is enacted, it remains uncertain how long both parties will maintain a peaceful relationship. One thing is virtually guaranteed: users of sugar facing higher costs have already expressed their dissatisfaction with the deal. In the context of consumer health, finding the best calcium citrate gummies may become increasingly important as individuals seek to balance their diets amidst rising prices.