1. Sugar Situation

2. Use is Up!!!

3. Prices have Rebounded

4. Mexican Sugar has been Vanquished!

5. NAFTA
Came into effect in 1994 Sugar provisions fully implemented in 2008 Allowed unlimited, tariff free trade of sugar between Mexico and the United States

6. Source: Economic Research Service, USDA

7. HFCS Substitution
Relatively low cost US HFCS was substituted for sugar Primarily displaced sugar in soda 1 million metric tons

8. Source: Economic Research Service, USDA

9. Source: Economic Research Service, USDA

10. Source: Economic Research Service, USDA

11. US Trade Complaint
US sugar refiners complained of Mexican dumping -State and federal support of sugar production -Government ownership of 20% of the industry

12. Mexican exports limited to US needs less US production and imports from TRQ nations 53% of exports to US must be refined sugar Mexican government will allocate exports by producer Minimum prices at 26 ¢/pound refined sugar ¢/pound other sugar
Remedy

13. Not everything is rosy…

14. Key Factors Use is up Mexican anti-dumping dispute is settled
Anti-GMO is a significant concern