John B. Breaux: “The price of sugar on world markets is almost always very low and is often below the cost of producing sugar even in the…”

“The price of sugar on world markets is almost always very low and is often below the cost of producing sugar even in the most efficient sugar industries. This phenomenon is caused by subsidization of sugar exports by the European Union and other governments, and by dumping by companies that must export their sugar at any price to avoid harming their domestic markets. The U.S. sugar program is intended to keep the price of sugar in the U.S. market at a level that assures a reasonable return to U.S. growers, processors and refiners of cane and beet sugar. A primary component of the program is WTO-legal tariff-rate quotas on imported sugar and sugar-containing products under Chapters 17, 18, 19 and 21 of the Harmonized Tariff Schedule of the United States. These quotas keep world price sugar from disrupting the U.S. sweeteners market and assure countries that are historical suppliers of the U.S. market that they will benefit from U.S. prices. If the tariff-rate quotas do not keep dumped world price sugar off the U.S. market, the sugar program will be severely damaged. Therefore, it is essential that attempts to circumvent the tariff-rate quotas be identified and stopped promptly.”