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U.S. makes offer to Mexico on sugar issue

The United States has made an offer to the Mexican government on resolution of the problems surrounding the agreement to limit Mexican sugar exports into the United States, a USDA official has told The Hagstrom Report.

Mexico should accept the U.S. offer, the official added.

Under the North American Free Trade Agreement, Mexico is allowed unlimited exports of sugar into the United States. But that agreement does not allow Mexico to export subsidized sugar to the United States. After a U.S. government investigation of Mexican sugar subsidies and dumping, the Mexican government agreed to limit imports. But the U.S. sugar industry says the agreement is not working properly because Mexico is not exporting the raw sugar that U.S. cane refiners need.

–The Hagstrom Report

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