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The Sugar Beat - Mexican Export Subsidies Injuring U.S. Sugar Producers - 7/29/2014 -

Louisiana Sugar Cane FamilyMexican Export Subsidies Injuring U.S. Sugar Producers

The Sugar Beat, July 28, 2014
WASHINGTON-U.S. sugar producers have filed new subsidy allegations in their countervailing duty case against Mexico's sugar industry, including evidence that export subsidies are fueling a flood of Mexican sugar shipments and injuring U.S. sugar farmers and processors.

The new allegations, filed last Thursday with the U.S. Department of Commerce (DOC), detailed two components of a subsidy meant to support Mexican sugar mills and facilitate exports.

First, Mexico's government dictates the price that sugar mills must pay farmers for sugarcane. That government-set price incorporates a lower price for sugarcane destined for exports. Second, the government requires mills to export large quantities of sugar to eliminate surplus production in Mexico. This helps keep prices high for the sugar mills sell in Mexico while depressing the prices received by its U.S. competitors. READ THE STORY

Additional information about the antidumping and countervailing duty petitions is available at www.sugaralliance.org/mexico


 

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