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Mexico & U.S. deal on sugar dispute

Mexico and the U.S. have reached a deal to avoid the potential for steep duties on Mexican sugar imports to the U.S. Mexico is one of the largest suppliers of sugar to the United States which cannot meet the demand on its own. In March, the American Sugar Alliance filed a claim with the U.S. Commerce Department that Mexico was dumping cheap, subsidized sugar into the heavily protected U.S. market.

Mexico’s Agriculture Ministry disputed the charges saying all of their exports are legal.

According to Reuters, anti-subsidy duties on Mexican sugar, as recommended by the Commerce Department, would be suspended along with anti-dumping duties.  Limits on imports at certain times of the year and the amount of refined sugar that enters the U.S. market along with minimum price protections to prevent undercutting or keeping U.S. prices artificially low are part of the deal.

The agreement is open to a 30-day comment period.