Lingering US-Mexico Sugar Tssues Even As Agreement Announced

Top officials from the U.S. and Mexico Tuesday announced a tentative accord. But the American Sugar Alliance has some concerns about a “major loophole” dealing with additional U.S. needs. Alliance spokesman Phillip Hayes said, “Mexico could exploit this loophole to continue to dump subsidized sugar into the US market and short US refineries of raw sugar inputs.”Hayes said the U.S. sugar industry wanted to work with Commerce Secretary Wilbur Ross on the provision that gives Mexico the right of first refusal to fill 100 percent of any additional sugar USDA determines is necessary to meet commercial demand for sugar that is used for everything from candy to beverages and processed foods.The agreement will be finalized over several days, but removes one contentious issue from the table when the U.S., Mexico and Canada begin formal talks to renegotiate the North American Free Trade Agreement.The U.S. corn industry expressed support for the deal. John Bode, president and CEO of the Corn Refiners Association, said the agreement once finalized would protect a $500-million-a-year market in Mexico for the industry. The National Corn Growers Association also welcomed the agreement, noting that Mexico is the top export market for U.S. corn overall.