It is easy for most Americans to not fully realize the effects of the sugar market on our economy. Sugar is an essential component to our agriculture industry that involves jobs, revenues, and affects the price of many other products.
Recently, India’s government announced it would be pumping more government subsidies into its country’s sugar production industry. This continued practice of foreign governments “rigging the game” through billions in subsidies to their sugar farmers is continuing to hurt the global market, including conditions right here in the United States.
These “sugar dumps” give foreign suppliers an unfair advantage against American farmers and violate international rules set by the World Trade Organization.
There continues to be legislation in Congress that could once again level the playing field for Americans. The “Zero for Zero” bill would end the effects of subsidized foreign sugar affecting our food industry by mutually eliminating tariffs and subsidies tied to the international sugar market. This would ensure that in addition to India, countries like Brazil, Turkey and China would also be unable to engage in these practices.
The effect would be a free market for sugar trade that gives our farmers the chance to compete globally at zero cost to the taxpayer. Given the importance of this commodity, it would be a significant reform of international trade—one that allows us as a nation to play a fair game with foreign competitors in this sector.
