In First Trade War Shot, Mexico Cancels Sugar Export Permits To U.S.
by Tyler Durden
Mar 8, 2017
While the Trump administration has in recent days withdrawn from calls for an all-out trade war with Mexico, and is seeking to re-establish calmer relations with the Mexican presidency after a sharp fallout over his plan to build a wall on the Mexican border and crack down on illegal immigrants arriving from Mexico, it appears that it is Mexico that has taken a pre-emptive step in the imminent trade dispute by canceling existing sugar export permits to the US in a dispute over the pace of shipments, Reuters reports citing a letter. The trade flare-up could temporarily disrupt supplies industry sources were cited as saying.
Reuters adds that the letter was sent by Mexico’s sugar chamber to mills on Monday, partly blaming the situation on unfilled positions at the U.S. Department of Commerce, which it said has led to a “legalistic” interpretation of rules with no U.S. counterparts in place in Washington for Mexican officials to negotiate with.
The cancellations are the latest dispute of a years-long trade row between Mexico – the United States’ top foreign supplier of sugar – and its neighbor at a time when cane refiners are struggling with prices and tight supplies, U.S. industry sources said. The development also comes as ties between the United States and Mexico have frayed under U.S. President Donald Trump, who took office in January and wants to recast the North American Free Trade agreement as he sees the trade deal skewed to favor Mexico.