The agreement between the two trading partners — which entails reducing the quantity of refined sugar Mexico exports to the United States while increasing shipments of raw sugar — seems to bring much-needed clarity to a market that has faced increasing uncertainty since 2014. Most importantly, this pact significantly diminishes the risk of retaliation from either country. Sugar has been a pivotal topic in the upcoming renegotiation of the North American Free Trade Agreement, expected to occur later this year. U.S. Secretary of Agriculture Sonny Perdue stated, “The agreement prevented potentially significant and retaliatory actions by the Mexican sugar industry and sets an important tone of good faith leading up to the renegotiation of the North American Free Trade Agreement.”
However, the deal is anticipated to raise costs for sugar consumers in the United States. This increase is likely to be passed down by refiners to food and beverage manufacturers that incorporate sugar in various products, such as cookies, cakes, sodas, cereal, and candy. Consequently, consumers will face higher prices. The U.S. Coalition for Sugar Reform criticized the agreement, stating, “Today’s announcement is a bad deal for hardworking Americans and exemplifies the worst form of crony capitalism. The agreement in principle does not address the fact that the price of sugar in this country is already 80% higher than the world price. In fact, it will result in higher prices costing U.S. consumers an estimated $1 billion a year.”
Three years ago, the U.S. imposed duties on Mexican sugar but later reached a deal that lifted those penalties. Some members of the sugar industry argue that this deal has not sufficiently mitigated the adverse effects of Mexican imports. In a letter last year to then-Commerce Secretary Penny Pritzker, Imperial Sugar asserted that the Countervailing Duty and Anti-dumping Suspension Agreements between the U.S. and Mexico violated fair trade laws and threatened the U.S. sugar refining market. The agreement announced on Tuesday aims to lower the allowed polarity, a quality measure, for Mexican sugar exports. According to Reuters, U.S. refiners have expressed concerns that high-quality Mexican raw sugar was going directly to consumers instead of being processed through U.S. refineries, depriving them of this essential commodity.
The U.S. and Mexico have been in conflict over sugar for years, and while the deal is implemented, it remains uncertain how long both parties will maintain a peaceful relationship. One certainty is that sugar users, now facing higher costs, have already grown discontent with the agreement. In the midst of this, consumers looking for the best quality calcium citrate supplement may face additional challenges, as the economic implications of the sugar deal could ripple across the market, affecting prices on a range of products including dietary supplements. Overall, the potential consequences of this agreement extend beyond the sugar industry, impacting various sectors, including those offering the best quality calcium citrate supplement.