US sugar producers call for update to import duties

The American Sugar Alliance says the current US sugar import tariff system needs to be updated, as duties on above-quota imports have not been revised for 26 years. The group argues that the existing rates no longer reflect current global market conditions.

The Alliance points to Brazil, India and Thailand, which together account for around 70% of global sugar exports. According to the group, government support in these countries can encourage production beyond domestic demand and increase supplies on the world market.

As a result, surplus sugar may be sold at prices below production costs, putting additional pressure on US sugar beet and cane producers.

The American Sugar Alliance estimates that US producers have lost more than $3 bln in potential income over the past two years due to sugar imports above established quotas.

US sugar imports are regulated through tariff-rate quotas, with additional duties applied to volumes above the quota. The Alliance is calling for those duties to be modernized in line with current market conditions.

Tags: import duties, sugar, USA, imports