Control of Sugar in the United States Essay (Article)

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Introduction

The United States has two Tariff-Rate Quotas (TRQs) that govern the importation of several types of sugar. “Some of these sugar imported includes; refined sugar, sugar syrup and raw cane sugar” (Fas.usda.gov). According to the TRQs provided in the chapter 17 of the legal Harmonized Tariff Schedule (HTS) this tariffs absolutely allows all sugar importers in United States to either pay a nominal or zero duty (Fas.usda.gov).

Discussion

Raw sugar simply means sugar that is free from moisture and has only sucrose content (Fas.usda.gov ). The tariffs were developed simply to ensure that imported sugar is adequate to meet peoples demand and also be of affordable prices. The United States secretary usually established such TRQs rates precisely for raw and unrefined sugar imports in the months of August or September. This is always done on the beginning of every fiscal year in October (Fas.usda.gov ).

Additionally, the United States department of Agriculture have moved a step further and engaged in issuing certificates of Quota eligibility. Once the recipient has the certificate, raw sugar can be imported from any supplying countries at TRQ duty rates. The type of sugar imported can be either in refined form, or used as a major ingredient in a sugar product or used in production of alcohol (Fas.usda.gov ). Notable to mention is that, if the raw cane sugar producer country is one of the countries benefiting from special trade preferences, then that country is eligible to zero duty.

Impact of sugar import restrictions

One of the major importances of imported sugar restriction in the United States is that, the program fully empowers the US government to protect the income of sugarcane growers. Additionally, all firms that participate in processing other crops into sugar, are also protected from import competition. Nevertheless, this program also controls a uniform and minimum sugar prices that are entirely authorized by the 2002 farm bill. Sugar restriction also limits the amount of sugar being sold by processors domestically, especially when the product being imported is below the required amount (of about 1.532 million tons). Moreover, sugar import restriction tends to also support the domestic sugar prices by simply making the non-recourse loans easily available to sugar processors (Fas.usda.gov ).

All imported products that contain sugar and which are identified in the HTS chapter 17 are subjected to Tariffs Rate Quotas. On the other hand, Note 8 has clearly established a fair TRQ rate for any sugar product containing over 10% of dry weight sugar and which are over 64,709 metric tons (Fas.usda.gov ). Nevertheless, as (Fas.usda.gov ) stated, “some of this products imported include; cocoa powder and also blended sugar syrup.” Such fair tariffs automatically contribute to the availability of the product in market at affordable prices.

Other product containing sweet things that are imported and which are excluded from this TRQ tariffs include the sweetened ice tea mix. Products such as candy and chocolates are also imported under the same TRQ supported and identified in chapter 17, 18, 19 and 21 of the HTS (Fas.usda.gov ). This is why the product is always available in market and at affordable prices. USTR openly allocated 59,250 metric tons of the total sugar and sugar products being imported to the United States from Canada (Fas.usda.gov ). All this imports from Canada enter the United States duty free. The remaining imports, about 8% was to be freely imported by any supplier on first come first serve basis. Nevertheless, it is also subjected to duty free tariffs depending on the product and the country of origin (Fas.usda.gov ).

Conclusion

In summary, it is clear that the Unites States under the Agricultural department control all the forms of sugar and sugar product simply to protect their local farmers. The NAFTA agreement was also developed specifically to steer up free trade among the North American states.

Works Cited

Fas.usda.gov. U.S Sugar Program. 2008. Web.

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IvyPanda. (2022, January 23). Control of Sugar in the United States. https://ivypanda.com/essays/control-of-sugar-in-the-united-states/

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