United States legislators have extended its deadline to reach a deal with Mexico on sugar talks with two countries, as they all reach an agreement that will prevent what would otherwise be a tit-for-tat trade dispute.
Regulators in Washington have extended the trade dispute deal deadline for another 24 hours as Mexico has threatened to start a trade war over sugar before the start of negotiations within the North American Free Trade Agreement.
This comes at quite an opportune time, of course. US Commerce Secretary Wilbur Ross comments, “The two sides have come together in quite meaningful ways, but there remain a few technical details to work out. We are quite optimistic that our two nations are on the precipice of an agreement we can all support, and so have decided that a short extension of the deadline is in everyone’s best interest.”
This single day extension will give both sides of this dispute a bit more time to finish technical consultations, according to US Commerce Secretary Ross. The Economy Minister of Mexico refused to comment. Still, Mexican negotiators hope to strike to a deal with a goal to reduce Mexican sugar duties by as much as 80 percent, a massive increase that the US has threatened to apply beginning June 5 if they could not reacha new deal.
Any new agreement, of course, will replace an old deal from 2014, which is the last time that the United States approached the idea of sticking Mexican sugar companies with new duty charges. At that time, the US allowed for Mexico to export 53 percent of its sugar in a refined form. Obviously, US demand for exports of raw sugar continues to reach higher proportions—perhaps upwards of 70 percent—and at a far lower quality than it is today.
American Sugar Alliance spokesman Philip Hayes comments, “The US negotiating team … should be commended for their hard work to bring Mexico’s subsidised sugar industry into compliance with US trade laws, [but] several important issues … remain unresolved.”
He also goes on to say that this industry was hoping to find a deal which would “finally end the injury caused by Mexico’s dumping and unfair trade practices”