Background on Key Figures and Relevance
The Mexican government recently announced an increase in tariffs on imported sugar ranging from 156% to 210%. This move aims to protect the national sugarcane sector’s stability, according to Carlos Blackaller Ayala, president of the National Union of Sugarcane Producers (CNPR). Meanwhile, Juan Carlos Anaya, director of the Group of Agricultural Market Consultants (GCMA), acknowledged the tariff hike as a correct step but insufficient to balance the market.
GCMA’s Perspective on Tariff Adjustments
Anaya from GCMA explained that to effectively safeguard domestic sugar producers, several actions are necessary. These include expanding the export quota to the United States and negotiating an equivalence scheme with high-fructose corn syrup imports through Mexico’s Secretariat of Economy.
- Combatting contraband and undervaluation: This involves addressing incorrect tariff fractions, ensuring fair trade with the U.S., and maintaining price stability for internal market benefits.
- Preventing cost transfer to consumers: The tariff adjustment should avoid passing increased costs onto end-users, thus preserving market internal stability.
Anaya emphasized that without controlling contraband, ensuring fair trade with the U.S., and maintaining internal price discipline, the tariff’s impact will be limited.
CNPR’s Support for Government Action
Blackaller, CNPR president, supported the government’s firm action to protect the national sugarcane sector. He stated that this decision avoids trade distortions and ensures fair competition, aligning with Mexico’s international commitments.
The new tariff aims to counteract the sugar oversupply in the national market, which has eroded profitability across the production chain. By targeting the declared customs value (including cost, insurance, and freight), this regulatory measure virtually halts potentially disruptive imports.
Government’s Plan for Sugarcane Modernization
Blackaller mentioned that authorities will implement the Sugarcane Modernization Plan, focusing on boosting productivity, enhancing producer profitability, and diversifying caña uses into food and renewable energy products like ethanol and bio-turbosina.
“The tariff adjustment is the most crucial step right now, as it paves the way for an efficient and sustainable national market,” Blackaller stated. He also mentioned ongoing collaboration with Secretary of Economy, Marcelo Ebrard Casaubon, to integrate Mexican sugar into replacing imports for food and beverage manufacturing industries in Mexico.
Additionally, efforts are underway to incorporate the Mexican sugarcane sector into renewable energy generation.
Sindicato Azucarero’s Stance
Lorenzo Pale Mendoza, General Secretary of the Sugarcane Workers’ Union, highlighted the importance of this measure amidst the worst crisis in 25 years. He attributed the situation to low sugar prices and excessive, unfair imports—mainly from Central America—which negatively impact workers, producers, and the entire sugar industry value chain.
