Dept. of Commerce: Mexican Sugar Subsidies Distort Trade

The U.S. Department of Commerce (DOC) today said Mexican sugar subsidies are giving Mexico’s sugar mills an unfair trade advantage. As a result of this preliminary ruling, a duty deposit will be collected on sugar imports from Mexico until the U.S. government can complete its investigation and make a final determination in the case. A 17.01 percent duty deposit will be imposed on sugar imported from mills operated by the Mexican government. Sugar produced by the Mexican company GAM will see a 2.99 percent duty deposit and all other Mexican sugar will be subject to a 14.87 percent duty deposit.

World Sugar Market is Far From Free or Fair

The idea that there is global free trade in sugar is a “mirage,” according to Patrick Chatenay, a sugar and ethanol expert from the UK-based company ProSunergy, because “subsidies are rampant and unequal.” Further, he said, “Currency fluctuations make a mockery of tariff trade concessions and can damage competitive sugar producers.”