MECAS(08)16 - US Sugar Under the 2008 Farm Bill
The US is one of the world’s largest sugar producers and is also one of the globe’s most significant importers of sugar from the world market.
US sugar policy has long acted to support US prices of sugar well above world market levels. Because the program’s effectiveness would be challenged when all restrictions to sweetener trade between the US and Mexico were removed starting 1 January this year, the 2008 Farm Bill contained the most substantial changes to the US sugar programme in more than 30 years. Whilst these changes to the sugar provisions of the new Farm Bill are key to determining the impacts on sweetener markets, other parts of the Bill as well as related energy legislation also help to determine the future dynamics of sweetener markets in both the United States and Mexico.
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