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Jackson, RyanOackson.ryan@epa.gov] Elizabeth Heaton Wed 5/24/2017 2:00:58 PM NAFTA Ag Alert - Issue No. 8
NAFTA Ag Alert
May 24, 2017
Issue No. 8
I
US Agriculture in Jeopardy as Dispute With Mexico Nears Deadline
As the deadline for a decision in the dispute over Mexican sugar approaches, sources say the U.S. agricultural industry is concerned that siding with the U.S. sugar industry - the most protected in the United States - will touch off a trade war that will destroy the thirdlargest export market for American agriculture and harm the very farmers who helped elect Donald Trump.
It's clear that the Mexicans are serious about retaliation. The Mexican Sugar Chamber today issued a statement that if the U.S. decides to impose duties on Mexican sugar on June 5, Mexico will be forced to retaliate with a reciprocal duty on imports of high-fructose corn syrup from the United States coming from Iowa and other corn belt states. The ' ' 1 earlier authorized such duties as compensation for U.S. trade violations involving dolphin-
Juan Cortina Gallardo, the Chamber's chairman, said that the Mexican sugar industry is working with the Ministry of Economy to reach an agreement with the U.S., but, if "the stubbornness and the extreme demands of the U.S. sugar industry lead to the imposition of duties against Mexican sugar, then it will be necessary that the Mexican authorities make use of the WTO compensation granted yesterday to Mexico, thus immediately applying duties against U.S. fructose."
Cortina noted that the World Trade Organization granted Mexico compensation against U.S. products in the amount of $163 million. "This," he said, "would be equivalent to the ability to immediately stop a third of the total amount of U.S. fructose imported to Mexico."
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