The American Bakers Association says a tentative U.S.-Mexico agreement to control imports of sugar from Mexico “is not good for bakers or all other users of sugar,” says Baking Business. The bakers trade group said sugar growers want “a 100 percent monopoly on sugar supplies in the United States. It is a shame the federal government is such an enabler of this grab.” A trade group for growers said the agreement, open for review for 30 days, would foster free and fair trade.
Iowa Sen Chuck Grassley said the agreement would end Mexico’s threat of retaliatory tariffs on high fructose corn syrup from the United States. “Iowa corn growers won’t be penalized because of a disagreement with somebody else,” Grassley told reporters. The agreement was reached on the same day the Commerce Department said it would impose countervailing duties of up 56.55 percent on sugar from Mexcio on grounds it was being sold at predatory prices.
Commerce said the pact with Mexico creates “mechanisms to ensure that unfairly traded imports of Mexican sugar do not cause injury to U.S. sugar producers.” Said Baking Business, “The draft agreement sets the minimum price for refined sugar imports from Mexico at 23.57c a lb f.o.b. and for all other sugar covered in the agreement at 20.75c a lb f.o.b., while restricting refined sugar imports to 60% of total shipments from Mexico. The deal also limits the total amount of sugar imports and provides for timing of shipments so as to minimize impact on U.S. producers.”