Whats New

Whats New

July 9, 1998 - International Trade News

Mexican Sugar Production and Exports Set New Records

Total Mexican sugar production for the 1997-98 crop is estimated at 5.3 million tonnes, representing the fourth year of record yields. At the same time, exports are expected to top 1.2 million tonnes, an amount equal to the size of the entire Canadian market.

As of early July, Mexico had shipped over 15,000 tonnes of its 27,954 tonne refined sugar allocation to the U.S.. Under the NAFTA, Mexico is entitled to ship 25,000 tonnes (total raw and refined sugar) to the U.S. each year. An additional 2,954 tonnes was granted in 1997 under the global refined sugar quota. Mexico's NAFTA access will increase to 250,000 tonnes in 2001 if Mexico continues to be a net exporter - although Mexico argues that the terms of a side letter agreement will allow unlimited access. Whatever the outcome of the U.S.-Mexico debate, Mexico's access is extensive compared to Canada's 10,300 tonne annual limit.

Refined Sugar Access to U.S. (Tonnes)

  1998 2001
Mexico NAFTA 25,000 250,000 or unlimited
Mexico global 2,954 ?
Canada NAFTA 0 0
Canada global 10,300 ?