Trump Screws US Sugar Consumers to the Tune of a Billion Dollars

The Trump Administration's first big trade negotiation has resulted in the limiting of sugar imports into the United States for the benefit of crony US sugar producers,

“We have gotten the Mexican side to agree to nearly every request made by US industry to address flaws in the current system and ensure fair treatment of American sugar growers and refiners,” Wilbur Ross, US commerce secretary, told a news conference in Washington with his Mexican counterpart Ildefonso Guajardo.

He said the deal — which limits Mexico to sending only 30 per cent of its sugar exports as refined sugar, compared with 53 per cent previously — prevented dumping, corrected for Mexican state subsidies and protected US corn growers, chocolate and soda producers.  In other words, it is a horrific deal using long debunked mercantilist theory that benefits no one in this case except crony sugar.

The National Grain and Feed Association praised the secretaries for creating a “can-do environment."

The US Chamber of Commerce also backed the crony deal and hailed Secretary Ross and the Trump administration “for listening to the concerns of industry and averting trade actions that would have cost American jobs and stifled economic growth”.

Agralytica, an agricultural consulting firm, slammed the deal in a memo to sweetener clients.

“It can only be characterized as the worst form of managed trade. The two industries got together and gave themselves higher sugar prices with the blessing of the two governments. These prices represent an annual $1 billion tax on US consumers,” the memo from economist Tom Earley said.

It will only get worse. Negotiations with Mexico on Nafta are expected to start as soon as August.

 -RW