The US will sweeten Mexico; heads for its biggest sugar shipment in six years

Published 2024년 3월 14일

Tridge summary

Mexico's sugar production is predicted to hit a decade low in 2024 due to drought and reduced fertilizer use, leading to the United States becoming Mexico's largest sugar supplier. The U.S. is expected to export 160,000 short tons of sugar to Mexico, the largest amount in six years, comparable to levels during the active period of the North American Free Trade Agreement. Despite Mexico declaring U.S. sugar ineligible for duty-free treatment under IMMEX, U.S. sugar exports to Mexico have increased in the last two years and are expected to rise further in 2024.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

After a complicated 2023 for Mexican sugar producers due to the drought that has affected cane crops, 2024 looks less encouraging, a situation that the United States will not waste, because everything indicates that Mexico will be its largest customer. According to the Economic Studies Services of the United States Department of Agriculture, it is projected that during this year the neighboring country will export 160,000 short tons of sugar, of which 88% (140,800 tons) will go to Mexico, the largest amount in six years. “This would put U.S. sugar exports to Mexico on par with those of the 2008-2013 period, when the North American Free Trade Agreement (NAFTA) was active,” reads a report. With NAFTA, Mexico could import American sugar without tariffs or quotas, so, in that period, shipments from the neighboring country averaged 167,000 short tons. But in the past two years, the United States has increased its sugar exports to Mexico as domestic production of sugar beets and cane ...

Source: Expansion