U.S. sugar growers and producers fight CAFTA
Sugar growers and processors are lining up against the proposed Central American Free Trade Agreement because they say it will adversely impact their industry.
CAFTA, which still must be approved by the U.S. Congress, is a trade and investment agreement that includes higher sugar import quotas for the Dominican Republic, Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua.
The high CAFTA sugar quotas, coupled with extra imports from Mexico and any quota increases from other free trade agreements under negotiation, will endanger the long-standing U.S. sugar program, the industry contends. If sugar imports under the quota system surpass 1.523 million tons annually, Congress has ordered the program to be discontinued.
Under the program the United States imports 1.256 million tons of sugar each year from 41 countries at a price of around 20 cents a pound -- more than double the price for sugar on the world market. It is a boon for sugar producers in developing countries because they receive higher prices; U.S. sugar growers produce 8.5 million tons a year, also receiving about 20 cents per pound.
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