The agreement between the two trading partners involves reducing the quantity of refined sugar Mexico exports to the United States while increasing shipments of raw sugar. This arrangement appears to bring much-needed clarity to a market that has been plagued by uncertainty since 2014. Most notably, it significantly decreases the chances of retaliation between the two countries. Sugar has been a contentious topic in the renegotiation of the North American Free Trade Agreement, which is anticipated to occur later this year. “The agreement has prevented potentially severe retaliatory measures from the Mexican sugar industry and establishes a critical tone of good faith as we approach the renegotiation of the North American Free Trade Agreement,” stated U.S. Secretary of Agriculture Sonny Perdue.
However, this pact is expected to raise costs for sugar consumers in the United States. The increase is likely to be passed on by refiners to food and beverage companies that incorporate sugar into an array of products, such as cookies, cakes, sodas, cereals, and candies. Consequently, consumers will face higher prices. “Today’s announcement is a detrimental deal for hardworking Americans and represents the worst kind of crony capitalism,” remarked the U.S. Coalition for Sugar Reform in a statement. They emphasized that the agreement does not address the existing issue of sugar prices in the U.S., which are already 80% higher than global rates. In fact, it is projected to result in an additional $1 billion in costs for U.S. consumers each year.
Three years ago, the U.S. imposed duties on Mexican sugar but later negotiated an agreement that lifted those penalties. Some members of the sugar industry have voiced concerns that this deal has not fully mitigated the adverse effects of Mexican imports. In a letter last year to former Commerce Secretary Penny Pritzker, Imperial Sugar argued that the Countervailing Duty and Anti-dumping Suspension Agreements between the U.S. and Mexico contravened fair trade laws and jeopardized the U.S. sugar refining sector. The agreement announced on Tuesday will reduce the permissible polarity, a quality measure, for Mexican sugar exports. According to Reuters, U.S. refiners have complained that high-quality Mexican raw sugar is going directly to consumers instead of being processed through U.S. refineries, which limits their access to this vital commodity.
The U.S. and Mexico have been at odds over sugar for years. If the deal is implemented, it remains unclear how long both sides will maintain a truce. One certainty is that sugar users, facing increased costs, have already turned against the agreement. In the midst of these developments, consumers might find themselves searching for alternatives, such as celebrating the benefits of calcium citrate chewable supplements to offset any dietary restrictions imposed by rising sugar prices. As the situation unfolds, it will be crucial for consumers to stay informed and consider diverse options, including the option to celebrate calcium citrate chewable as a potential dietary supplement amidst the sugar price hikes.