American Sugar Alliance calls for overhaul of import tariffs amid concerns over subsidised foreign sugar
The American Sugar Alliance is urging the U.S. to update sugar import tariffs, citing alleged foreign subsidies and market distortions involving Brazil, India and Thailand. The group claims U.S. producers lost over $3 billion and says over-quota tariffs have remained unchanged for 26 years.
The American Sugar Alliance has called for changes to the United States’ sugar import regime, arguing that government subsidies and trade protections in major exporting countries are distorting global sugar markets and putting pressure on U.S. producers, reported News Dakota.
The alliance has singled out Brazil, India and Thailand, which together account for roughly 70% of global sugar exports. According to the group, government support in these countries can encourage sugar production beyond domestic consumption requirements, resulting in surplus supplies being placed on international markets at prices it says may fall below production costs.
The group argues that such market conditions have affected U.S. sugarcane and sugarbeet growers. It estimates that American producers have lost more than $3 billion in potential income over the past two years as a result of subsidised foreign sugar entering the U.S. market outside established quota limits.
The U.S. sugar import system operates through tariff-rate quotas (TRQs), under which specified quantities can enter at lower tariff rates, while imports above the quota face higher duties. United States Department of Agriculture (USDA) data confirms that the U.S. regime includes tariffs on sugar imported above quota levels.
However, the American Sugar Alliance argues that these over-quota tariffs have not kept pace with changes in global sugar markets. The group says the rates have remained unchanged for 26 years and is urging the U.S. government to update them to reflect current market conditions.
The debate comes as U.S. sugar producers continue to push for stronger protection against what they describe as subsidised and artificially low-priced foreign supplies. The alliance maintains that modernising the tariff structure would help address distortions in the market and provide greater protection for domestic sugarcane and sugarbeet farmers.
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Source : ChiniMandi
