Sugar Users Seek To Avoid Trade War With Mexico

Big sugar-using companies like Coca-Cola are pushing U.S. trade negotiators to reach a new agreement with Mexico and avoid a trade war that would disrupt sugar supply lines and raise costs. The position directly conflicts with that of the U.S. sugar industry which wants to prevent Mexico from dumping low-price sugar into the U.S. market. Corn syrup makers also want to avoid a trade war with Mexico, one of their biggest markets. The three-year-old tug-of-war needs to be resolved, along with the Canadian lumber imports dispute, before the Trump administration can begin renegotiating NAFTA. Meanwhile, U.S. Commerce Secretary Wilbur Ross worked out a new sugar trade deal with Mexico, though several prickly issues have yet to be finalized. (See http://reut.rs/2ra6GOp).