US to impose new sugar trade deal with Mexico
WASHINGTON: US Commerce Secretary Wilbur Ross is likely to impose a new sugar trade deal with Mexico even if final revisions to it fail to win support from the US industry, trade lawyers and experts say.
After announcing a deal this week that would dramatically cut the amount of refined sugar that Mexico ships to the United States, officials from the two countries are working with their industries on final language that would govern its operation.
At issue is a new right of first refusal granted to Mexico to supply all US sugar needs not met by domestic suppliers or other foreign quota holders.
A coalition of American sugar cane and beet farmers and a major refiner want a more explicit guarantee that the US Department of Agriculture, not Mexican producers, will dictate what type of sugar fills that gap.
They are worried that a flood of refined sugar will pour in, rather than the raw sugar needed to keep US mills running.
The final sticking point stands in the way of resolving a years-long dispute over Mexican access to the highly regulated US sugar market, which is protected by a complex web of subsidies and rationed quotas for foreign producers.
The sugar industry is known for its sway in Washington.
But its point of view on Mexican imports is not shared by sugar users such as confectioners and soda makers.
The Trump administration wants to clear away the sugar dispute and a lumber trade row with Canada before starting full-scale negotiations to revise the North American Free Trade Agreement.