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New Era Dawns in U.S.-Mexico Sugar Trade – IF10034

New Era Dawns in U.S.-Mexico Sugar Trade – IF10034 published on

On December 19, 2014, the U.S. Department of Commerce (DOC) signed an agreement with the Government of Mexico suspending the agency’s countervailing duty (CVD) investigation into subsidization of Mexican sugar exports. The DOC also signed a second agreement with Mexican sugar producers and exporters that suspends an antidumping (AD) duty investigation into Mexican sugar exports to the United States. Beginning in 2008, Mexican sugar exporters occupied a uniquely favored position among sugar exporters supplying the U.S. market, because the North American Free Trade Agreement (NAFTA) provided Mexican sugar with unlimited, duty-free access. The two suspension agreements fundamentally alter the nature of trade in sugar between Mexico and the United States: first by imposing volume limits on Mexican sugar exports to the U.S. market, and second by setting minimum price levels for the exported sugar. 

CRS Resources

CRS Report R42535, Sugar Program: The Basics, by Mark A. McMinimy

Date of Report: December 31, 2014
Pages: 2
Order Number: IF10034
Price: $5.95

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