Mexico optimistic can reach sugar agreement with US before deadline

22/10/2014 12:00 - 476 Views

Mexico is optimistic it can resolve a dispute with the United States over sugar exports before an impending deadline later this month, Mexico's Economy Minister Ildefonso Guajardo said on Friday.

In August, the United States decided to slap import duties as high as 17 percent on Mexican sugar. The decision was a victory for the powerful U.S. sugar industry but a blow to candy and soft drink makers who can expect to pay more for the sweetener.

Costs could spiral even higher if the U.S. government decides to impose anti-dumping duties on Mexican imports too, a decision due on Oct. 24.

"We're reasonably optimistic that before Oct. 24 we can come to an agreement," Guajardo told Reuters during a visit to Argentina.

Mexico would be open to a settlement in the dispute, the head of the country's government-owned mills said last week.

The United States is a net importer of sugar and Mexico is one of its largest suppliers. Mexican imports are estimated at 2.1 million short tons for the 2013/14 crop year that runs through Sept. 30.

Source: Reuters