Despite Limits, Mexico Remains Significant Supplier of U.S. Sugar

According to ERS, despite trade limits, Mexico remains the most significant sugar exporter to the United States. Before 2008, Mexico provided a negligible share of U.S. sugar imports but has since become the largest supplier. Mexico’s increasing contribution to the U.S. sugar supply comes despite a limit imposed on the country’s exports to the United States under the terms of suspension agreements negotiated with the U.S. Department of Commerce in 2014.

In 1994, NAFTA was implemented, and sugar duties were phased out during a 15-year period. In July 2006, the United States and Mexico negotiated additional import quotas, and in 2008, sugar trade between the two countries became duty and quota-free, an arrangement that remains in place with the USMCA. From 2008 to 2013, with no duties or quotas, Mexico’s share of total U.S. imports grew sharply and peaked at 64% in 2013.

Mexico currently supplies the U.S. roughly 30% of its total sugar imports.

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