Anti-dumping complaint
Sugar puts US-Mexico relationship on edge
The relationship between Mexico and the United States is once again tense. This time the countries have a dispute over the import and export of sugar. The Trump administration accuses the Mexicans of dumping. As a countermeasure, the southern neighbors threaten to stop the import of corn syrup.
Mexico and the United States import and export sugar and sweeteners back and forth. The countries have been arguing about this within agrarian politics for more than a decade. With the sharp tongue of the Trump administration, that is now reaching a climax, writes Bloomberg† They threaten anti-dumping measures.
1,16
million tons
Hard head in agreement
The US Department of Agriculture accuses the Mexican sugar industry of not adhering to the established quota and associated floor prices. Agreements were made about this in 2014. Commerce Secretary Wilbur Ross announced on May 1 that he would threaten anti-dumping measures if no agreement is reached on sugar imports. Juan Cortina, president of the Mexican sugar industry, has a hard time meeting Wilbur's June 5 deadline. Talks so far have come to nothing. The US wants to tax Mexican sugar.
Cheaper sugar on the world market
According to figures from the US Department of Agriculture, the US is expected to import 2016 million tons of sugar from Mexico in the 2017-1,16 season. This makes it the largest supplier in the country. In addition, Mexico in turn imports 1,6 million tons of corn syrup per year from the US.
Agriculture Minister Sonny Perdue says he is hopeful that a solution will be reached. If that doesn't work, the US will buy sugar on the world market, he said in a radio interview. 'Sugar prices on the world market are lower than what we now pay to Mexico.'
keep discussing
David Gantz, professor of commercial law at the University of Arizona, explains why Americans are so stubborn: 'The American sugar industry is extremely protectionist. They are well represented in the congress and have so much support.' According to Juan Ricardo Luciano, chairman of syrup producer Archer-Daniels-Midlands, supply and demand are in balance. 'The industries in both countries are healthy. The 2 countries must continue to discuss a solution. That is best for both parties.'
Niels van der Boom
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