This column appears in the May 2021 issue of Sugar Producer.
There’s a famous quip about our nation’s capital that if you want a friend in Washington, get a dog.
It’s true that Washington, D.C., is often consumed by political bickering. But sugar, in so many ways, is a unique issue. We are grateful to count many friends in Congress on both sides of the aisle who are willing to stand up in defense of America’s sugar farmers and workers by supporting our successful no-cost sugar policy.
As President Biden continues to build out his administration, we look forward to partnering with new friends and officials to support the smart farm and trade policies that allow sugar producers to continue investing in sustainable farm practices, efficient sugar production and strong communities — all while keeping America supplied with an essential ingredient.
One critical position within the Biden administration is the U.S. trade representative. This is because without a strong U.S. sugar policy, the dysfunctional and heavily subsidized world sugar market would jeopardize the livelihoods of American sugar producers and the American consumers and small businesses who depend on them.
U.S. trade representative Katherine Tai, who just confirmed in March, has already signaled her strong support for America’s sugar producers and affirmed her commitment to America’s no-cost sugar policy. In written comments submitted to the Senate Finance Committee following her confirmation hearing, Tai responded to inquiries from several senators asking how she would handle trade issues pertaining to sugar.
“Any reforms I pursue regarding the global sugar market will be consistent with maintaining the current no-cost U.S. sugar policy,” Tai stated in response to a question from Sen. John Barrasso of Wyoming asking how she would approach reforming the distorted global market.
In response to a follow-up question from Barrasso about how to utilize the World Trade Organization (WTO) to secure a multilateral approach to sugar reform, Tai stated that updates to the WTO rules would be needed to effectively target foreign subsidization.
“WTO rules need to be updated to reflect longstanding agricultural issues that have not been rectified under the WTO’s current construction. I will work with like-minded partners to ensure that any new rules are consistent with U.S. domestic sugar goals,” Tai wrote.
Sen. Bill Cassidy of Louisiana asked Tai about Brazil’s recent attempts to trade increased access to its market for certain commodities in exchange for allowing Brazil to send more subsidized sugar to U.S. shores. Tai firmly stated that under her watch, she will not tolerate other nations trying to pit American agriculture against itself.
“In my testimony, I emphasized that no U.S. stakeholder should be prioritized over another during trade negotiations,” Tai said. “If confirmed, I commit to ensuring that no new agricultural market access comes at the expense of other agricultural stakeholders.”
These comments are bad news for mega-subsidizer Brazil, which benefits from direct and indirect subsidies valued at an estimated $2.5 billion per year to prop up its sugar industry — and which has long hoped to flood the American market with its subsidized sugar. In fact, widespread production- and trade-distorting foreign subsidies, including from top offenders Brazil, India and Thailand, have led to rampant overproduction and sugar prices below the cost of production.
Tai also stated that “U.S. trade policy must benefit domestic agricultural producers and provide consumers and food manufacturers with a safe and secure domestic food supply. I will make this a central pillar of any agricultural trade policy I pursue.”
Tai’s commitment to supporting domestic agricultural producers and her assurance that sugar access won’t be unilaterally traded away in future trade negotiations is welcome news for America’s sugar farmers and workers.
We look forward to partnering with Tai to advance our shared goals of worker-centered trade policies that acknowledge the importance of good-paying American jobs and the need for fair trade rules reflective of global trading realities.