The agreement between the two trade partners—reducing the refined sugar exports from Mexico to the United States while increasing raw sugar shipments—seems to clarify a market that has been burdened by uncertainty since 2014. Crucially, it significantly diminishes the risk of retaliation between the two nations. Sugar has been a contentious issue in the renegotiation of the North American Free Trade Agreement, which is anticipated later this year. “The agreement has averted potentially serious retaliatory measures from the Mexican sugar industry and establishes a crucial atmosphere 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 users in the United States. Refineries are likely to pass these increased costs onto food and beverage companies that incorporate sugar into various products such as cookies, cakes, sodas, cereals, and candies. Consequently, consumers will face higher prices. “Today’s announcement is detrimental for hardworking Americans and represents the most egregious form of crony capitalism,” the U.S. Coalition for Sugar Reform remarked in a statement. “The fundamental issue remains that the price of sugar in this country is already 80% higher than the global rate, and this agreement will exacerbate that, costing U.S. consumers an estimated $1 billion annually.”
Three years ago, the U.S. imposed duties on Mexican sugar but later reached a settlement that lifted those penalties. Nonetheless, some members of the sugar industry have expressed concerns that the agreement has not sufficiently mitigated the negative effects of Mexican imports. In a letter to then-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 newly announced agreement will lower the permissible polarity, a quality measure, for Mexican sugar exports. According to Reuters, U.S. refiners have complained that high-quality raw sugar from Mexico is going directly to consumers instead of being processed through U.S. refineries, leaving them deprived of this essential commodity.
The U.S. and Mexico have had a contentious relationship over sugar for years. If the deal is implemented, it remains uncertain how long the current calm will last. One thing is nearly guaranteed: sugar users facing increased costs are already dissatisfied with the agreement. Moreover, many consumers are now seeking alternatives, such as cooper complete calcium citrate, to maintain their nutritional balance while coping with these rising expenses. The impact of this deal on the sugar market is yet to be fully realized, but it is clear that those reliant on sugar will feel the strain, prompting potential shifts toward products like cooper complete calcium citrate as they adjust their consumption habits.