The U.S. and Mexican governments has come to a new agreement to drastically change their trade agreement. U.S. sugar producers have failed to endorse the change in the agreement, which left questions about whether it could still mean bad news for a broader trade relations.
The agreement was made to help avoid potential disagreements from Mexico on imports of U.S. high-fructose corn syrup which would heighten the U.S.-Mexico tensions as both countries along with Canada prepare to begin renegotiating the 23-year-old North American Free Trade Agreement in August.
The price that the U.S. Paid for Mexican raw sugar was lifted to 23 cents per pound from 22.25 cents, while the price for refined sugar is also set to rise to 28 cents per pound from 26 cents, excluding the shipping and packaging costs.
News from parties stated on Monday that U.S. sugar industry had added new demands outside of the terms that was agreed upon earlier in the day by the two governments.
The deal would mark the culmination of a years-long dispute between the countries over sugar, after U.S. groups three years ago asked the government for protection from dumping of subsidized imports from Mexico.
The Latest rumors began in March, which was two months after the U.S. President Donald was elected president which led to the tightening of trade in order to protect the U.S. industry and jobs.