Thursday, June 15, 2017

Sugar deal modified

Commerce modifies Monday’s Sugar Deal

Washington–The Commerce Department says they’ve drafted a new version of the deal with Mexico earlier this week and it'll tighten up the amount of refined Mexican sugar exported to the US.

The “suspension agreement” under revision is mostly the same but still under study by US refiners and food manufacturers.

“America’s sugar producers appreciate the hard work of Secretaries Ross and Perdue,” said Phillip Hayes, a spokesman for the American Sugar Alliance. “We are reviewing the agreement in detail and will continue to consult with the DOC and USDA.”

The U.S. and Mexico signed off on the revision late yesterday and Commerce will accept public feedback until 5 p.m. June 21.

The new deal keeps in place all the core provisions that requires that 70 percent of sugar imports from Mexico be raw and allows the remaining 30 percent to be refined. That’s a significant change from the current suspension agreement that maintains a 47-53 split for raw and refined.

US sugar refiners complained for years that Mexico was shipping too much refined sugar into the US. The industry prefers raw imports that need to be processed in US mills.

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