Dive Brief:
- The U.S. Department of Commerce has commenced an investigation into allegations that Mexico is “dumping” sugar in the United States.
- U.S. sugar producers claim that unfairly low prices for Mexican sugar has cost them some $1 billion annually.
- Should the U.S. growers prevail, Commerce could impose tariffs on Mexican imports -- essentially bringing shipments to a halt.
Dive Insight:
We have to hand it to the U.S. sugar industry for having what the Mexicans would call “cojones.”
There’s arguably no industry in America that is as highly subsidized as sugar. The U.S. government sets minimum price levels for the sweetener to ensure profits for American sugar companies, which have sent U.S. candy makers reeling and led makers of high-fructose corn syrup to cut prices. Remarkably, U.S. sugar subsidies are done in the interest of national security.