The Ministry of Economy of Mexico announced this Friday an increase in the quota that sets sugar exports from Mexico to the United States.
The quota was increased from 688,308 to 824,386 tons, to be exercised during the period between October 1, 2021 and September 30, 2022.
Since 2014, sugar trade between the United States and Mexico has been managed under the Suspension Agreements between the two countries.
The agreements suspended antidumping and countervailing duty investigations of sugar imports from Mexico and are reviewed and renewed as determined by the US Department of Commerce every five years.
Thus, the Agreement by which the export of sugar is subject to prior permission and establishes a maximum quota for its export (Agreement), published in the Official Gazette of the Federation (DOF) on October 5, 2017, and modified by diverse published in the same official broadcasting body on December 27, 2020, establishes a maximum quota to export to the United States, sugar originating in the United Mexican States derived from sugar cane or beet.
Point 13 of the Agreement establishes the formula to determine the amount of the total quota for each sugar cycle, which will be determined in metric tons of raw value.
Likewise, said amount will be calculated in July of each year, will have ordinary adjustments in the months of September, December and March of each sugar cycle, and will be announced by the General Directorate of Commercial Facilitation and Foreign Trade and the General Directorate of Light Industries of the Ministry of Economy, through notices published in the DOF.
On August 12, 2021, the Notice was published in the DOF through which the amount of the maximum quota is disclosed, to export sugar to the United States during the period between October 1, 2021 and September 30 from 2022; amount that was updated in September 2021 and was disclosed through a document published in the DOF on October 20 of the same year.
On November 23, 2021, the Government of the United States of America, through its Department of Commerce, announced the need for an increase in the volume of Mexican sugar with a polarization of less than 99.2 degrees, so that on November 17 December 2021, the Notice was published in the DOF through which the extraordinary amount of the quota to export sugar to the United States of America is disclosed, in the period between October 1, 2021 and March 31, 2022 , for 150,000 short tons raw value of sugar (TCVC).