US and Mexico discuss ethanol deal to cut sugar surplus

The Mexican and the US government are discussing a program that would reduce the sugar surplus in North America by selling Mexican sugar to the United States for ethanol production, which would then be sold back to Mexico, Jack Roney, Director of Policy and Economic Analysis for the American Sugar Alliance said.

In what would be an unprecedented agreement, such a deal would utilize some of Mexico’s excess sugar that otherwise would be shipped to the United States duty free.

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