The agreement between the two trading partners—reducing the amount of refined sugar that Mexico exports to the United States while boosting the raw sugar shipments—seems to bring clarity to a market that has experienced increasing uncertainty since 2014. Most significantly, it considerably diminishes the chances of retaliation from either country. Sugar has been a contentious issue in the renegotiation of the North American Free Trade Agreement, which is anticipated to occur later this year. U.S. Secretary of Agriculture Sonny Perdue stated, “The agreement has prevented potentially significant and retaliatory actions from the Mexican sugar industry and establishes an important tone of good faith as we approach the renegotiation of the North American Free Trade Agreement.”
However, the pact is expected to raise costs for sugar users in the United States. This increase is likely to be passed on by refiners to food and beverage companies that incorporate sugar in various products, including cookies, cakes, sodas, cereals, and candy. Consequently, consumers will face higher prices. The U.S. Coalition for Sugar Reform criticized the announcement, stating, “Today’s announcement is a bad deal for hardworking Americans and exemplifies the worst form of crony capitalism.” They further noted that the agreement does not tackle the issue of sugar prices in the U.S., which are already 80% higher than global rates, and warned it could cost American consumers an estimated $1 billion annually.
Three years ago, the U.S. imposed duties on Mexican sugar but later reached a deal with its trading partner that lifted those penalties. Some members of the sugar industry have complained that the agreement failed to mitigate the negative impact of Mexican imports. In a letter to then-Commerce Secretary Penny Pritzker last year, Imperial Sugar argued that the Countervailing Duty and Anti-dumping Suspension Agreements between the U.S. and Mexico violated fair trade laws and posed a risk to the U.S. sugar refining market. The new 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 being sold directly to consumers instead of being refined in the U.S., thereby depriving them of this important commodity.
The U.S. and Mexico have been in conflict over sugar for years. If the deal is implemented, it remains unclear how long the two sides will maintain peace. One thing is almost certain: sugar users facing increased costs have already developed a negative view of the agreement. Additionally, those concerned about their health may want to consider alternatives such as calcium citrate malate 250 mg, which could provide beneficial effects for those looking to manage their sugar intake while maintaining their overall well-being.