A dispute with the United States over sugar poses a threat to the industry in Mexico but Economy Secretary Ildefonso Guajardo believes that negotiations for a new accord could be completed within two weeks.
The Mexican government is working to a tight deadline: June 5 is the date by which a new agreement must be forged to ensure that Mexican sugar continues to enter the U.S. market tariff-free.
Mexico has exported sugar without any protectionist constraints since 2008.
Last year, it exported 1.1 million tonnes of sugar to its northern neighbor. The industry represents 3% of Mexico’s Gross Domestic Product and directly and indirectly employs over 2 million Mexicans in 16 states.
However, the industry is now facing uncertainty that, until recently, didn’t exist.
While the government and the sugar industry agree that U.S. demands are “excessive,” Guajardo indicated that “talks have restarted…[and] we are moving forward in the process and believe that if things continue like this, within two weeks we could reach a point where we can settle our differences.”
If an agreement is not reached, there is a danger that the U.S. could impose a tariff of up to 80%.
Source: mexiconewsdaily.com