Sugar Group Warns Against Concessions to Canada in NAFTA 2.0

Concessions to Canada on refined sugar in North American Free Trade Agreement (NAFTA) 2.0 talks would make effective operation of sugar trade deals with Mexico more difficult, American Sugar Alliance Trade Adviser Don Phillips told the International Trade Commission (ITC) June 20.Specifically, ending tariffs on sugar from Canada would undercut successful implementation of the recently revised suspension agreements with Mexico, he argued. ITC is examining the likely effects of providing duty-free treatment to products currently subject to duties under NAFTA. The agency will provide its report to the Office of the U.S. Trade Representative (USTR) by August 16 as the three NAFTA countries get ready to reopen the deal.U.S. and Mexican sugar exporters agreed to revised pacts on sugar trade to replace accords struck in 2014 to settle dumping and subsidy cases brought by the U.S. industry. U.S. sugar refiners had complained that Mexico flooded the market with refined sugar under the original suspension deals.“Elimination of tariffs on Canadian sugar would increase the supply of unneeded refined sugar weighing on the U.S. market,” Phillips told the agency. He also said Canada has a “decidedly non-reciprocal” relationship with the U.S. in sugar and sugar-containing products.For more than 20 years, Canada has kept in place prohibitive antidumping duties that bar U.S. exports of refined sugar, he remarked. Since the playing field is already tilted in Canada's favor for sugar and sugar-containing products, NAFTA renegotiations should not worsen the situation, he argued.