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Mexico opens quota for sugar exports to the US

Mexico announced the opening of a quota for sugar exports to the United States for a total of 45,359 tons.

The Ministry of Economy said that the extraordinary amount of the quota corresponds to the period between October 1, 2020 and September 30, 2021.

Likewise, the Ministry of Economy indicated that it is sugar with polarization lower than 99.2 degrees as it is produced and measured dry, equivalent to 50,000 short tons of crude value.

Consequently, the government will allocate the extraordinary amount in accordance with the provisions of the third paragraph of Point 14 of the Agreement, by which the export of sugar is subject to prior permission and a maximum quota for its export is established (Agreement).

In addition, those Mills or Groups or sugar consortiums that:

  1. They have submitted their request to assign a quota to participate in the 2020/2021 sugar cycle, in accordance with Point 17 of the Agreement.
  2. They have responded to the April 2021 consultation on the availability of sugar with polarization less than 99.2 degrees, in case of an additional need.

Sugar exports

The beneficiaries of the 2020/2021 quota, may express in free writing their intention to participate in the allocation of the extraordinary amount of the quota that is disclosed, by sending said letter to the email account dgce.azucar@economia.gob.mx, within three business days from the day following the publication of the Notice.

The government also indicated that the exported sugar must undergo polarization tests before a laboratory authorized by the United States Customs and Border Protection office.

For the purposes of the Notice, the allocation criteria will be made considering the lower result of:

  • The percentage share of each applicant in the total volume of sugar production for the 2019/2020 cycle. Only the production reported by the applicants will be considered.
  • The quantity requested.

Once this has been done, the corresponding prior export permit will be issued under the terms already established in the Agreement.

To conclude, sugar exports from Mexico are made in the following markets: United States; standard and raw sugar to the world market (except the United States); refined sugar to the world market (except the United States) and sales to IMMEX companies.

In the case of sugar exports to the US market, these are established through a maximum quota.

 

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