Under the new agreement, Mexico agreed to reduce the proportion of refined sugar to the US market from 53 percent today to 30 percent of the total, in exchange for the suspension of dumping and subsidy investigations.
The price of Mexican sugar was priced at 23 cents crude and 28 cents in its refined version.
Ross said the agreement had not been accepted by the US sugar industry, but he hoped it would be added as the drafting process of the agreement progresses in the coming days.
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Guajardo said the agreement would allow Mexico to maintain its position as the main supplier of sugar to the United States market and the same value of sales even if the ratio of raw to refined sugar changed.
He also said that the agreement guarantees Mexico to be the main supplier of the additional sugar needs of the US market.
The agreement comes in times when the United States, Mexico and Canada are ready to modernize the North American Free Trade Agreement (NAFTA), whose formal negotiations could begin after the waiting period, ending August 16.
Both Ross and Guajardo agreed that the sugar negotiations have allowed the two countries to get to know each other better, which can facilitate the modernization of NAFTA.
Source: http://www.notimex.gob.mx/
