WASHINGTON, D.C.—American sugar growers’ organizations aren’t satisfied with the latest proposal to resolve their ongoing concerns about the illegal dumping of subsidized Mexican sugar into the U.S.
On June 6, USDA and the U.S. Department of Commerce announced a proposal to amend a December 2014 agreement between the U.S. and Mexico that growers say failed to restore balance to the U.S. sugar market.
Jack Roney, director of economics and policy analysis with American Sugar Alliance, said the proposed amendment represents a “big improvement but doesn’t quite get there.”
Corn Refiners Association President John Bode lauded the proposal as a means of strengthening the original agreement without threatening the $500 million in U.S. corn sweetener exports to Mexico.
But sugar producers believe the amendment, as currently drafted, would open up a new “loophole.” Roney explained Mexico has the right to supply 100 percent of any unmet needs of the U.S. sugar market, and the amendment would strip USDA of its ability to specify whether those surplus sugar shipments should be unrefined or processed.
Roney said the alliance is working with the U.S. government on further modifications to close the loophole, with a deadline of June 30 for the updated agreement to be finalized.
Source: www.capitalpress.com