EsTalks between U.S. Commerce Secretary Wilbur Ross and Mexican Economy Minister Ildefonso Guajardo failed to reach a conclusion on the future Mexican sugar exports, Reuters reports. The U.S. has set a deadline of June 5 to reach a new agreement, which centers around quotas of unrefined vs. partially refined products. Without it, tariffs will be applied. As outlined in Panjiva research of May 2 this has a parallel in the U.S. decision to impose tariffs on Canadian lumber. It should also be seen in the broader context of forthcoming NAFTA negotiations.
Panjiva data shows sugar accounted for $659 million, or 0.2% of total Mexican exports to the U.S. in 2016. The value of sales dropped 90.4% in March on a year earlier, and were 10% of February’s level after Mexico withdrew export licenses. Only part of the slack has been taken up by other countries. Total imports in March fell 58.5%, with the Dominican Republic representing half the shipments after Brazilian exports fell.
Source: Panjiva
For Mexico’s side of the equation in may restrict U.S. exports of high fructose corn syrup. These amounted to $371 million in the 12 months to March 31, or 59% of the value of Mexican sugar exports to the U.S. HFC exports to Mexico increased 3.8% in the first quarter on a year earlier. Leading exporters including Archer Daniels Midland and Tate & Lyle may try to lobby Commerce to think again about tariffs.
Source: Panjiva
