U.S. to export 21,774 tonnes of sugar to Mexico
March 28, 2007
by Ron Sterk
WASHINGTON — The U.S. Commerce Department recently issued an Export Trade Certificate to allow the export of 21,774 tonnes of U.S. sugar duty free to Mexico in 2007.
The American Sugar Alliance (A.S.A.) said it received the certificate March 19. The A.S.A., which represents U.S. sugar producers and processors, said it would allocate the shipments among all U.S. beet and cane producers based on refining capacity, whether or not they were affiliated with the A.S.A. The allocations were to be made immediately.
Wholesale sugar prices in Mexico averaged 33.3c a lb in February compared with 25c f.o.b. Midwest in the U.S., the A.S.A. said.
The 2007 shipments will allow U.S. producers to establish customers and distribution chains in Mexico for future shipments, A.S.A. chairman Dalton Yancey said.
Mexico may export up to 500,000 tonnes of sugar duty free to the U.S. from Oct. 1, 2006, to Dec. 31, 2007. But harvest and processing delays of the Mexican cane crop are resulting in lower-than-expected sugar production in Mexico this year. Trade sources have speculated Mexico might not have any excess cane sugar to export to the U.S. in 2007.
Under the North American Free Trade Agreement quantity limits and duties on sugar trade between the U.S. and Mexico are eliminated as of Jan. 1, 2008.