The price of Mexican raw sugar will rise to 23 cents per pound, up from 22.25 cents, while refined sugar will increase to 28 cents a pound from 26 cents, which Ross said would protect US sugar from dumping by Mexico.
WASHINGTON, June 6 Mexican Economy Secretary Ildefonso Guajardo said on Tuesday that the North American Free Trade Agreement's rules of origin can be improved but denied that Mexico was a "back door" for Chinese goods to enter the United States.
Commerce Secretary Wilbur Ross on Monday extended the deadline for resolution of the U.S. USA sugar refiners say Mexico's exports are subsidised, undercutting their business and that the agreement failed to stop dumping.
The United States and Mexico finalized a deal on sugar prices Tuesday - potentially clearing a key hurdle as the two countries look toward NAFTA discussions later this summer - but not everyone is on board with the agreement.
The White House said last month it intends to renegotiate NAFTA following a 90-day review period.
The United States and Mexico were negotiating to modify a 2014 agreement that set quotas and a price floor on Mexican sugar as an alternative to US antidumping and antisubsidy duties earlier that year. "The deal, he said, prevents harm to other US industries, including confectioners, beverage producers and corn growers". And significantly, the agreement requires that raw Mexican sugar be shipped flowing freely in the holds of ocean-going vessels, rather than being shipped in packages or by land.
An agreement in Washington would end a year of wrangling over Mexican sugar exports. Mexican sugar producers have pushed their government to consider retaliating with tariffs on imports of high-fructose corn syrup from the U.S.
Applying the punitive tariffs that the USA could impose in retaliation for Mexico subsidizing sugar and dumping it in the US would complicate other markets, Perdue said. U.S. President Donald Trump has pledged to re-negotiate the treaty. The latest talks began in March, two months after President Donald Trump took office vowing a tougher line on trade to protect USA industry and jobs.