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Sugar Cane Trade Agreement

3 Access to a free trade agreement in Peru is 11,000 tonnes, subject to net exporter status (and not yet granted) and 2,000 tonnes of special sugar which are not subject to net exporter status. The subsidiary agreement eliminated the unlimited sugar access provision contained in the original language of NAFTA. This initial provision would have allowed Mexico, after the seventh year (2001), to have full access to its total net production surplus, provided that it had generated a net production surplus for two consecutive years. The 2014 Farm Bill provides for a series of contingencies that may require a reallocation of allocations during the harvest year. If a piping processor to which a share of the OAQ is unable to market that share, it is allocated to the other processors within the same State, taking into account their ability to make up the deficit, as well as the interests of the producers served by the processors. If this step does not eliminate the deficit, the rest will be allocated to the other tube-producing States and then to the processors in those countries. If the shortfall is still not filled, it is allocated to the CCC for sale from CCC inventory. If CCC stocks are not sufficient to cover the deficit, the deficit is allocated to imports. The procedure for a beet sugar processor deficit is similar, unless there is no redistribution on the basis of states where processing takes place.

It is not intended that cane sugar deficits-OAQ will be attributed to beet sugar processors or OAQ deficits of beet sugar to cane sugar processors. During the NAFTA debates in the United States in 1999, these issues were sufficiently reinforced by congressional opposition to the agreement. As NAFTA experienced serious difficulties in the U.S. Congress in August 1993, the U.S. Trade Representative endorsed the arguments put forward by U.S. sugar producers that Mexico had access to the United States. The sugar market should be reduced. Initially, both Mexican sugar producers and the Mexican government opposed any concessions to the original agreement. But at the last minute, the Mexican sugar industry agreed to ”dilute” the original sugar deal to an ”ancillary agreement.” .

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