Sugar Alliance Says Outdated Tariffs Hurt U.S. Producers

The American Sugar Alliance says sugar markets are heavily distorted by government subsidies and trade protections, creating challenges for American producers.

The group points to Brazil, India, and Thailand, which account for about 70% of global sugar exports, and says those governments support and encourage production beyond domestic demand.  The Alliance said surplus sugar can enter world markets at prices below production costs.  The group added that has consequences for American sugarbeet and sugarcane farmers.

The Alliance estimates producers have lost more than $3 billion in potential income over the past two years because of subsidized, over-quota foreign sugar.  U.S. sugar imports are managed through tariff-rate quotas, with duties applied above imports over the quota amounts.

USDA data confirms the U.S. system includes over-quota tariffs.  The Alliance said those tariffs have not been updated in 26 years and is calling for them to be modernized to reflect current conditions.

Click Here for more from the American Sugar Alliance.

Earlier this month, we chatted with Samantha Parrott of the Snake River Sugarbeet Growers Association about the dumping issue.  Click Here for that story and interview.

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