Tradelines News

Get the latest news and updates on cross-border customs and international trade.

North American Sugar Sector Has a Lot Riding on NAFTA Success

(Bill Tomson – AgriPulse)

Mexican sugar farmers, U.S. refiners and the U.S. food sector have a lot riding on the current efforts to renegotiate the North American Free Trade Agreement.

The complex arrangement allowing a substantial flow of Mexican sugar into the U.S. market is, at its core, based on an original side deal made when NAFTA was first implemented 24 years ago, but which could fall apart if the trade pact disintegrates, says Jason Hafemeister, USDA’s trade counsel.

U.S. and Mexican industry representatives agree that if the U.S. were to pull out of the massive three-country trade pact that is currently being renegotiated, the flow of Mexican sugar to the U.S. could be severely restricted, cutting off almost all of the Mexican exports that help keep U.S. refiners operating.

The result – at least in the short term – would be chaos as Mexico looked for new ways to use the sugar it was accustomed to selling to the U.S. and as the U.S. looked for new foreign supplies to replace imports from Mexico. Click here to read more.