As the Senate considers the 2012 Farm Bill – the National Foreign Trade Council is urging Senators to support reform of U.S. sugar policy. According to a letter sent to all Senators – the current policy restricts imports of sugar and negatively impacts U.S. trade relations. According to NFTC President Bill Reinsch – the sugar program – in its current form – sets artificially low import quotas and applies high tariffs on imports exceeding those limits. He says the General Accounting Office estimated in 2000 that the sugar program costs American refiners, consumers and manufacturers approximately 1.9-billion dollars each year. Reinsch says a more recent study from Iowa State researchers puts the cost at up to 3.5-billion dollars annually.

Maintaining these restrictions – according to Reinsch – also carries a high price in trade negotiations. He says they bind the hands of our trade negotiators and place them at a disadvantage with our foreign counterparts in the negotiating process. He says this has often led to less market access for other U.S. ag goods like beef, rice and soybeans. He says NFTC believes continuing the current sugar program conflicts with national goals of export promotion and an open rules-based trading system.

NFTC is a member of the Coalition for Sugar Reform.