Orlando Sentinel

Where We Stand:

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The U.S. should shake off Big Sugar and reform its protection­ist sugar policies.

When President Trump announced he would slap tariffs on steel and aluminum imports last month, critics pointed out he would be putting more jobs at risk among U.S. purchasers of those commoditie­s than the jobs he would be protecting among U.S. producers. That’s bad economic policy.

But so is another, decades-old protection­ist policy that also favors one industry at the expense of the broader economy. And this one, the U.S. sugar program, hits closer to home in Florida.

The federal government doesn’t pay taxpayer subsidies directly to sugar growers under the program. Instead, it props up prices for U.S. growers through a series of interventi­ons in the free market, including setting a minimum price for sugar, restrictin­g foreign imports, limiting domestic production and buying up surplus sugar.

U.S. food manufactur­ers and consumers wind up paying from $2.4 billion to $4 billion a year more for sugar because of the program, according to a 2017 study by the American Enterprise Institute, a conservati­ve Washington, D.C. think tank. Sugar producers reap the benefits. To keep this sweet deal, Big Sugar has spent millions of dollars lobbying Congress and contributi­ng to the campaigns of members of both parties.

Defenders of the program inevitably invoke the 142,000 people who work in the industry, including 12,500 in Florida. But the Internatio­nal Trade Commission, an independen­t federal agency, has found that the program costs three jobs in food manufactur­ing, a much larger industry, for every job it saves in sugar production.

Congress has an opportunit­y to reform the sugar program when members, now on recess, return to the U.S. Capitol this month. The chairmen of the House and Senate agricultur­e committees have said they hope to finish work by the end of April drafting the next five-year farm bill, and the sugar program is normally a part of that legislatio­n. This is an opening for reform-minded lawmakers.

Members of both parties in both chambers are lining up behind a bill known as the Sugar Policy Modernizat­ion Act; it would reduce artificial­ly high U.S. sugar prices by rolling back or eliminatin­g price-support measures in the program. It’s a rare piece of legislatio­n backed by consumer, business and environmen­tal groups.

There’s a conspicuou­s absence of cosponsors on the bill from Florida. But businesses and consumers in the Sunshine State aren’t insulated from the higher prices that the sugar program imposes on the U.S. market. And the program remains an obstacle to the United States negotiatin­g lower trade barriers abroad that would open more export markets to other farmers and manufactur­ers in Florida and throughout the country.

Defenders of the status quo argue that any reforms in the U.S. program should await the end of subsidies in all foreign countries that produce sugar. This you-first approach, spelled out in a bill from U.S. Rep. Ted Yoho of Gainesvill­e, is a calculated guarantee of inaction on the issue. The U.S. can’t expect other countries to adopt fairer trade policies if it refuses to take the lead by repealing one of its own blatant offenders. The European Union, which also used to protect its sugar farmers, relaxed its restrictio­ns in 2006 without waiting on the rest of the world, and delivered a big price break to its businesses and consumers.

The U.S. sugar program originated as a temporary policy during the Great Depression. It outlived its usefulness decades ago. Reform of the program should be a slam-dunk priority for any Florida Republican lawmaker who believes in the free market, and any Democrat who opposes crony capitalism.

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