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New sugar quota to the United States: 688,308 tons

The Mexican Ministry of Economy announced this Wednesday the amount of the maximum sugar quota for the month of September 2021, to export to the United States for up to 688,308 tons during the period between October 1, 2021 and October 30 September 2022.

With this, the Agreement is fulfilled by which the export of sugar is subject to prior permission and a maximum quota for its export is established (Agreement), published in the Official Gazette of the Federation (DOF) on October 5, 2017.

Likewise, this same agreement was modified by means of a different one published in the same official diffusion organ on December 27, 2020, and establishes a maximum quota to export to the United States, sugar originating in Mexico derived from sugar cane or from beetroot.

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 crude value.

In addition, 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 made known by the General Directorate of Trade Facilitation and Foreign Trade and the General Directorate of Light Industries of the Ministry of Economy, through notices published in the DOF.

Sugar quota

Since 2014, the sugar trade between the United States and Mexico is managed under Suspension Agreements between the two countries.

The agreements suspended antidumping and countervailing duty investigations on sugar imports from Mexico and are reviewed and renewed as determined by the United States Department of Commerce every five years.

The countervailing duty agreement contains provisions to avoid an oversupply of sugar in the United States market, with export limits (quotas) calculated on the United States’ sugar needs, as determined by the Department of Agriculture and published in the World Agricultural Supply and Demand reports.

Mexico’s export limit (sugar quota) is set at 100% of US needs after accounting for US production and imports from countries with tariff quotas (based on commitments in the World Trade Organization).

The Antidumping agreement establishes reference prices for all types of sugar exported by Mexico.

 

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