New Sugar Quotas for Mexico to US on the anvil?
Posted on : 17 Apr, 2017
The United States is the fourth-largest sugar market in the world. However, the US government often takes a protectionist stand towards its domestic producers with minimum price guarantees and a complicated network of marketing allotments and quota. Mexico is the top supplier to the US sugar industry and it is affected by the 2014 trade deal, which established quotas and minimum prices for imports of raw and refined sugar from Mexico. Some of USA’s producers view the trade pact as a "tool to reduce competition” by barring cheap sugar imports from Mexico.
The trade pact is now being reviewed and the US industry is proposing an agreement wherein more raw sugar supplies will be allowed from Mexico. However, there will be specification on the types of companies Mexican mills can sell in the US. Further the clauses are expected to prevent Mexican exporters from selling tariff-free sugar to meet import quotas under the deal to companies such as CSC Sugar that make liquid sugar. CSC Sugar said the proposals would exclude it and others from the export quota allotted to Mexico and that would effectively force it to source sugar elsewhere, limiting its supply options and potentially hurting competition in a market that already has only a few players.
Big cane refiners such as ASR Group, the maker of Domino Sugar and other brands, and Louis Dreyfus Co's Imperial Sugar Company are supposed to be some of the beneficiaries of the changes to the trade pact.
CSC has a capacity to produce about 400,000 tonnes of liquid sugar per year, and it caters to Unilever Plc and Dr Pepper Snapple Group Inc., among others.
More on sugar market updates from Mexico and South America will be discussed at Starch World Americas on 13-14 June, 2017 in Foz do Iguaçu, Brazil.
Companies outside Latin, Central & South America may contact Ms. Huiyan at 65-6346 9113 | email@example.com while those in Mexico can contact Ms. Tanya at 52-55 52941423 or 52-155 3655 0760 | firstname.lastname@example.org and those in Brazil should call Ms. Michelle at 55 41 9957 3530 | email@example.com .