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Mexico Cancels Sugar Export Permits to U.S. in Trade Dispute

Posted March 08, 2017

Under Economic Issues, International Trade Issues

(Adriana Barrera – Reuters)

Mexico has canceled existing sugar export permits to the United States in a dispute over the pace of shipments, according to a letter seen by Reuters, in a flare-up industry sources said could temporarily disrupt supplies.

The letter sent by Mexico’s sugar chamber to mills on Monday partly blamed the situation on unfilled positions at the U.S. Department of Commerce, which it said has led to a “legalistic” interpretation of rules with no U.S. counterparts in place in Washington for Mexican officials to negotiate with. 

The cancellations are the latest dispute of a years-long trade row between Mexico - the United States’ top foreign supplier of sugar - and its neighbor at a time when cane refiners are struggling with prices and tight supplies, U.S. industry sources said. Click here to read more.