Mexico And United States Sugarcane Trade Dispute
editIn August of 2014 the United States implemented a series of sugar tariffs on Mexican plantation owners in order to establish minimum prices on sugar. These tariffs were issued after U.S sugar growers criticized the United States for allowing Mexican sugar growers to flood the United States market with a much cheaper supply of sugar. [1]
Opposing Sides
edit""Mexico""
The United States
The United States sugar industry has had trade protection from the federal government since 1789. In 1990 the United States enacted The United States Farm Bill, which protected United States sugar producers at all time high through price support that was given to farmers through loans, domestic market control, and tariff-rate quotas established to minimize sugar imported to the United States. [2]
Through the Farm Bill, sugarcane farmers are able to sell the federal government their produced product as repayment of the loan or sell their sugar on the market if the going price is higher then the loan amount. The Farm Bill also states that domestically produced sugar must make up for at least 85% of the country's domestic sugar demand, leaving the rest of the world to makeup for the other 15%. According to the American Sugar Alliance, sugarcane farmers are to face losses of $1 billion due to foreign competitors selling their crops at a lower price then what it takes to produce them. [3]
Sugarcane History
editMexico
Spanish settlers brought sugarcane to Mexico, where large plantations quickly began to rise, due to Mexico’s high native population, plantation owners were able to find a large neighborhood workforce. Today, Mexico is one of the top ten largest sugar producers in the world. Sugar is the second largest crop in Mexico (after corn). Sugar crops span 1.6 million acres throughout 12 Mexican states and employ 2.5 million of Mexico’s people. [4] After the Mexican revolution in 1910 the Mexican sugar industry took a dramatic change and is now run by government agencies. [5]
The United States
Sugarcane crops were brought to the United States boarders in 1619 in Jamestown, Virginia. During the mid eighteen hundreds the United States began to import half of their sugar from Cuba, while the other half was grown locally in Louisiana through America’s Haitian slave population. The United States is the fifth largest sugar producer and also the fifth largest sugar consumer. [6]
Reaching a Resolution
editIn December of 2014, the United States and Mexico agreed to rid of tariffs on imports of Mexican sugar. The United States agreed to enact measures that will limit the amount of sugar they will allow into the country from Mexico. The solution has caused dismay as implementing quotas on Mexican imported sugar to the United States was not a condition of the North American Free Trade Agreement that was established in the early 90’s. [7]
References
edit- ^ Joesphs, Leslie. ""U.S., Mexico Strike Deal to Scrap Sugar Duties."". The Wall Street Journal. The Wall Street Journal. Retrieved 22 April 2015.
- ^ Sugarcane.org. Sugarcane.org http://sugarcane.org/global-policies/policies-in-the-united-states/sugar-in-the-united-states.
{{cite web}}: Missing or empty|title=(help) - ^ Johnson, Tim. "Sugar war between Mexico, U.S. threatens broader trade relations". mcclathchydc.com. mcclathchydc.com. Retrieved 23 April 2015.
- ^ Vergara, Brenda. "Sugar War between Mexico, U.S. Threatens Boarder". american.edu. american.edu. Retrieved 22 April 2015.
- ^ "The Geography of Mexico's Sugarcane Industry". geo-mexico.com. Geo Mexico. Retrieved 22 April 2015.
- ^ Vergara, Brenda. "Sugar War between Mexico, U.S. Threatens Boarder". american.edu. american.edu. Retrieved 22 April 2015.
- ^ Joesphs, Leslie. "U.S., Mexico Strike Deal to Scrap Sugar Duites". The Wall Street Journal. The Wall Street Journal. Retrieved 22 April 2015.