US increases sugar import quota by 90,100 tonnes
The United States government on Wednesday said it was increasing its lower-tariff sugar import quota for fiscal year 2021 by 90,100 tonnes (raw value) as it tries to increase short-term supplies in the domestic market.
The U.S. Trade Representative also said it would allow this additional volume to enter the country up to Oct. 31, a month later than usual. The U.S. fiscal year ends at the end of September.
With the additional of the so-called TRQ quota, the total volume entering the U.S. at lower tariff will go to 1.2 million tonnes, more than the volume the country agreed to within World Trade Organization rules that is 1.11 million tonnes.
It is the second move by the U.S. government on sugar import quotas in two months. In July, it had reallocated part of the TRQ import quotas do other countries, as some of the original holders of the licenses failed to deliver the product.
The Dominican Republic will have the largest share of the additional low-tariff quota with 19,000 tonnes, followed by Brazil and Australia.
The increase of sugar import quotas comes as sugar futures for the U.S. domestic market are near the highest in nine years.
U.S. sugar prices are much higher, at nearly double international benchmark prices, because the government protects the domestic industry.