Mexican Sugar Talks Continue

Published online: Oct 25, 2000
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Mexico threatens U.S. with retaliatory measures.

A high-ranking trade official warned the U.S. that Mexico could retaliate if allotted sugar quotas were not met. The U.S. allotted a sugar quota of 116,000 tonnes to Mexico beginning October 1, up from 25,000 tonnes. But the U.S. has not given Mexico a schedule of shipping patterns.

The delay is the latest dispute between the two countries. Mexico originally filed a formal challenge against the U.S. August 17 saying NAFTA regulations give Mexican sugar free access to the U.S. market. In fact, Mexico hoped to export their entire surplus amounting to 550,000 tonnes.

But U.S. officials say trade ministers of both countries signed a side agreement that factors Mexican consumption of high fructose corn syrup in calculating its surplus. Those calculations indicate Mexico's surplus amounts to about 116,000 tonnes.