Sugar Trade Agreement

Long-standing differences over the level of access of Mexican sugar to the U.S. market and the barriers to Mexican trade for U.S. HFCS were resolved in a bilateral agreement between the two governments at the end of July 2006. The terms of this agreement apply until January 1, 2008, when bilateral free trade in sweeteners will come into effect under the original NAFTA conditions. In the second phase (years 7 to 14 or 2000-2009), Mexico would have duty-free access to the U.S. sugar market for the amount of its surplus, as measured by formula, up to 250,000 tonnes, with access without minimal duty always equal to the minimum amount of “boat load.” Mexico`s sugar production was the second largest in 2018-19 with 4.25 million tons, Jasso said, and required exporting a record 1,595,000 tons outside the United States. due to reduced needs from the United States and reduced consumption of total sugar and sweeteners in Mexico. He said Mexico was working on an ethanol program to use excess sugar production. The U.S. re-export program: the United States was the largest source of sugar imports in 1991 with 322,000 tons of gross value, followed by Cuba with 310,000 tons and Brazil with 224,000 tons. Most of the sugar exported by the United States to Mexico was under the auspices of the U.S. re-export program, which allows refineries to refine foreign raw sugar for re-export to Mexico without being subject to the domestic price environment.

This program has saved jobs at the U.S. sugar refinery and helped Mexico fill a significant gap in sugar supply, as Mexico`s sugar demand has increased significantly in recent years. U.S. sugar refineries have requested that any NAFTA agreement allow the re-export program to operate as long as sugar imports to Mexico are needed. NAFTA`s Early Discussions: U.S., Mexican and Canadian negotiators met for the first time in Toronto, Canada, in June 1991. Despite numerous ministerial-level meetings, participants still disagreed on a number of issues (for example. B how the proposed agreement should address trade issues in agriculture, automotive, energy, financial services, foreign investment, rules of origin and trade dispute resolution mechanisms). The 1992 meetings in Washington, D.C., March and Montreal, Canada, April 6-8, were unable to break the deadlock in the discussions. Nafta Agreement: In November 1993, the U.S.

Congress passed legislation authorizing the North American Free Trade Agreement (NAFTA). Nafta came into force on January 1, 1994 after being elected to the U.S. House of Representatives (234 to 200), the U.S. Senate (61 to 38) and the Mexican Senate (56 to 2) by favorable votes. The Canadian Parliament had already approved the agreement in May 1993. Original sugar provisions: The original draft sugar agreement between Mexico and the United States allowed Mexico to increase duty-free sugar exports to the United States from 7,258 tonnes of raw sugar to a maximum of 25,000 tonnes.