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Why US should keep sugar quotas - Essay Example

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Summary to essay on topic "Why US should keep sugar quotas"
The U.S. sugar industry is one of the largest and most efficient in the world and accounts for an important part of the U.S. economy both rural and urban areas. This industry offers over 146,000 jobs1 and generates close to $10 billion in revenue in the 19 states where sugar beets and sugarcane are grown and processed…
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Download file "Why US should keep sugar quotas" to see previous pages... This agreement came to benefit most countries, as they could readily export their sugar to the US where sugar price was higher than in the world market. When sugar from other countries flooded the US market, the availability was higher than the demand and the result was a drastic fall in the prices of sugar.
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To redress the situation, the government had to intervene to reduce the quotas to be imported from each country. Taking such a measure was to protect the sugar industry as well as the farmers and producers of sugar. The government also ensured that if sugar falls below a set price per pound, it would by the sugar so that farmers are guaranteed a minimum price.
With the NAFTA agreement reached in 19942, there have been a number of analyses to show that if care is not taking, then the US would witness dumping in the sugar market. Particularly worrying about this is issue is Mexico. It has been shown that as trade barriers fell with the creation of the NAFTA, U.S. exports of high-fructose corn syrup would flow into Mexico, and soft-drink makers in Mexico would start using high-fructose corn syrup as a sweetener instead of sugar. ...Download file "Why US should keep sugar quotas" to see next pagesRead More
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