As foreign suppliers jockey for position in the evolving global economy, it’s time for lawmakers to take a stand against a “hack” some countries have been using to give their sugar industries an unfair advantage over our own.
A new study published by Texas Tech University illustrates that many foreign competitors are channeling billions of dollars in subsidies into their sugar production and trade models.
Examples of that practice include Brazil, who subsidized $2.5 billion for promotion of its sugar and ethanol industry, India whose $1.7 billion in subsidies were brought into question by the World Trade Organization, and Thailand whose $1.3 billion in subsidies are actually being used to keep their domestic prices higher than their export prices to tap into international business.
It’s in our agriculture industry’s best interest for our lawmakers to take action.
The proposed “Zero for Zero” policy by Congressman Ted Yoho, would eliminate all direct and indirect subsidies benefiting the export of sugar by countries who have found the way to rig the game in their favor and in turn distort the global sugar trade. This proposal would level the playing field for everyone involved and eliminate these “sugar dumps” that hurt America’s farm workers and household consumers. A previous op-ed on this topic is here.
The proposal has bipartisan support in states like Florida that understand that our neighbors shouldn’t have to worry about foreign governments working against the best interests on our very own ports
Zero for Zero is boosted domestically as it fits well with the President’s views on trade—the proposed policy takes head-on governments overseas that are trying to exploit our economy, specifically American producers of sugar. The measure would be a blow against economic tactics that don’t work in the best interests of Americans.
HLF supports free market trade policies that are in the best interests of the United States, and Zero for Zero is a strong step toward strengthening our Agriculture industry and establishing a free market.
