IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: 06 Jun 2017 | Removal date: open ended
Still in force

Import quota

On June 6, 2017 the United States and Mexico announced a new agreemen that aims to resolve their sugar dispute. Under the terms of the December, 2014 suspension agreement, the U.S. Department of Commerce suspended the AD/CVD investigations in exchange for Mexico’s agreement to limit its exports and impose minimum export prices on sugar sold to the United States. This agreement continued to be a source of contention. In the newest agreement the United States once again agreed to suspend AD and CVD duties on sugar imports from Mexico, and Mexico made the following commitments:

  • The price at which raw sugar must be sold at the mill in Mexico will be increased from 22.25¢/pound to 23¢/pound, and the price for refined sugar will be increased from 26¢/pound to 28¢/pound.
  • The share of refined sugar that may be imported into the United States has been reduced from 53% to 30%. Moreover. the dividing line between refined and raw sugar has been reduced from 99.5% to 99.2% purity.
  • Mexico will increase enforcement measures and impose significant penalties on violators, including a reduction in the amount of sugar allowed to be imported equal to twice the amount of any sugar found to be in violation of the modified agreements.
  • Mexico has the right of first refusal to supply 100% of any “additional need” for sugar identified by the U.S. Department of Agriculture after April 1 of each year. Additional need is defined as demand for sugar in excess of the demand the USDA had predicted for that crop year.

The American Sugar Alliance criticized that final component of the deal, arguing that Mexico could “exploit this loophole to continue to dump subsidized sugar into the U.S. market and short U.S. refineries of raw sugar inputs.”

AFFECTED COUNTRIES

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TABLE
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AFFECTED SECTORS AND PRODUCTS

232 Starches & starch products; sugars & sugar syrups n.e.c.
1702 Other sugars, including chemically pure lactose, maltose, glucose and fructose, in solid form; sugar syrups not containing added flavouring or colouring matter; artificial honey, whether or not mixed with natural honey; caramel.
170290 Other, including invert sugar and other sugar and sugar syrup blends containing in the dry state 50 % by weight of fructose
235 Sugar & molasses
1701 Cane or beet sugar and chemically pure sucrose, in solid form.
170113 Cane sugar specified in Subheading Note 2 to this Chapter
170114 Other cane sugar
170191 Containing added flavouring or colouring matter
170199 Other
239 Food products n.e.c.
2106 Food preparations not elsewhere specified or included.
210690 Other

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