During his historic and successful 2016 “Make America Great Again” presidential campaign, then-candidate Donald Trump won over voting Americans with plain, unapologetic talk and by promising to restore the nation’s economic prosperity.
Trump also stated he would rewrite many, if not all of the trade deals that have been written, including the Clinton-era “disaster” known as the North American Free Trade Agreement (NAFTA).
Remember, Trump is already on record of saying that he will pull the U.S. out of the not-so-American-friendly trade deal, if the upcoming talks break down or if he disapproves with how the negotiations are conducted.
Another deal President Trump just helped re-negotiate with Mexico that is also tied to NAFTA, is the existing and problematic sugar importing deal between the two countries.
New Sugar deal negotiated with Mexico is a very good one for both Mexico and the U.S. Had no deal for many years which hurt U.S. badly.
— Donald J. Trump (@realDonaldTrump) June 29, 2017
The existing deal is sweet for Mexico’s sugar industry, but sour for American growers.
Because of how the deal was structured, Mexico cheated the US in 2014 by artificially lowering the cost of sugar by flooding the market with cheap sugar, and American sugarcane farmers were left selling product at a lower cost. In the case of 2014, the feds provided loans to cover the shortfall, but that money is being paid back through a lawsuit settlement against Mexico that was won by American sugar growers.
The negotiated sugar deal limits the amount of refined sugar Mexico can export to the US every year.
The sugar accord cuts the amount of refined sugar that Mexico can send to the U.S. to 30 percent of the total quota from 53 percent. It increases the proportion of raw sugar to 70 percent, while raising prices for both raw and refined shipments.-Bloomberg
With the Department of Agriculture wrapping up its nationwide Farm Bill listening sessions, legislators in Washington are now tasked to write the new 2018 agriculture measure, which will almost surely include the American sugar policy because of this zero cost to taxpayers.
Florida Congressman Ted Yoho’s (R) “zero for zero” bipartisan bill that looks to eliminate all sugar subsidies, should also be included in the upcoming Farm bill.
“Expressing the sense of Congress that all direct and indirect subsidies that benefit the production or export of sugar by all major sugar producing and consuming countries should be eliminated.”-Rep. Ted Yoho
With a pen in one hand, and a political pitch fork in the other, Trump appears to be following through with his campaign promise of helping the American farmer, as well as other US businesses, even the playing field so that they can fairly prosper in this global economy.