House Committee on Agriculture
Full Committee Hearing: Review of Agricultural Subsidies in Foreign Countries
June 3, 2015
Submission of Jack Roney of the American Sugar Alliance

Summary

American sugar producers are among the world’s most efficient, and most socially and
environmentally responsible, but they cannot compete in a world sugar market badly distorted by
foreign subsidies. So called “world market” prices are running barely half the world average cost
of producing sugar. Foreign sugar subsidies are expanding as governments seek to protect their
industries against the low world prices.

American sugar producers support the goal of multilateral elimination of global sugar subsidies.
Absent government intervention, the world sugar price would rise to reflect the cost of producing
sugar, and American producers could compete well on a level playing field. We have endorsed a
Congressional resolution to eliminate U.S. sugar policy when foreign countries eliminate theirs.
But unilateral elimination of U.S. sugar policy, as some policy critics suggest, would sacrifice
jobs in an efficient, dynamic American industry in favor of foreign jobs in countries that are
likely less efficient, but continue to subsidize.