“This is the first decision that has overturned a suspension agreement of any kind,” the company said. Mexican government officials claimed that Mexico could increase sugar production by privatizing the raw mill sector and other strategies to improve the efficiency and productivity of producers (for example. B freer internal market mechanisms, such as lower interest rates for agricultural loans and lower price support. From a Mexican perspective, a large U.S. sugar quota would provide a significant boost to the market for increased sugar production, with reduced Mexican government subsidies. On 1 January 2002, the Mexican government imposed a 20% soda tax on all beverages sold in Mexico that have not been sweetened with their own cane sugar. This effectively eliminated the use of U.S. HFCS in the Mexican beverage industry. The FOB reference price for refined sugar is USD 0.2800 per pound of commercial value (whether circulating freely or in containers weighing 1) MT or more when the sugar leaves the mill), as produced and measured dry. The initial suspension in 2014 required an import blend of 53% refined sugar and 47% raw sugar; The 2017 amendment reduced the number of refineries to 30% and increased the gross import allowance to 70%. The court said the agreement was invalid because the Ministry of Commerce had not published all recordings of meetings related to the agreement. According to the SAA, the main trade group representing sugar and beet suppliers, the policy adopted by amendments to NAFTA (North American Free Trade Agreement) in 2008 has reduced the cost of foreign sugar.
The United States imports more sugar from 41 countries, says the ASA. Mexico`s U.S. Sugar Quota: The annual U.S. sugar quota prior to NAFTA was about 8,000 tons, gross value. This quota reflected the status of net importer of sugar in Mexico. While Mexico`s sugar production was about 3.2 million tonnes, the growth in sugar consumption outpaced that of sugar production, resulting in relatively strong demand for sugar imports. For the first phase (years 1 to 6 or 1994-99), Mexico would have duty-free access for sugar exports to the United States for the level of its net surplus production, up to a maximum of 25,000 tonnes, gross value. If Mexico were not a net surplus producer, it would still have duty-free access for 7,258 tonnes or the minimum “load” allowed under the U.S. tariff rate quota.
By comparison, Mexico exported an average of 12,667 tonnes in the four years prior to NAFTA. Both sides of the sugar industry – sugar producers and sugar consumers – are reviewing court rulings to assess the potential impact on the United States. . . .