Sugar Shock

[DamnYankee]

WAPost editorial - Sun 8/22/09
U.S. growers' sickeningly sweet deal with the government

DOWN ON the farm, the latest dispute pits America's sugar producers against their biggest customers: food manufacturers that add the sweetener to everything from raisin bran to raspberry yogurt. The food makers are unhappy with a recent tightening of supplies that has pushed the wholesale price of refined sugar to 35 cents per pound. Warning of higher grocery prices and lost jobs, the manufacturers want Agriculture Secretary Tom Vilsack to allow more imports. Domestic sugar growers insist that supplies are adequate, thanks in part to imports of Mexican raw sugar to U.S. refineries, which were allowed on a tariff-free basis for the first time last year as part of the North American Free Trade Agreement.

Who's right?

cont'd
washingtonpost.com

 

[Toro]

The US pays higher sugar prices because of a narrow but powerful lobby group. Americans pay twice the global price for sugar because of tariffs on sugar.

 

[Mr. H.]

Big Ag. Pfft.

 

[editec]

Start trading with Cuba, they're full up on sugar cane.

Impose a tariff on it, of course.

 

[DamnYankee]

U.S. ports set to deal with Cuba - USATODAY.com

Through executive order, Obama already has made it easier for Cuban Americans in the U.S. to visit relatives in Cuba and authorized expansion of telecommunication service to the island, says John Kavulich, a policy adviser with the U.S.-Cuba Trade and Economic Council, a non-profit group that provides information on trade issues with Cuba.

Congress also has loosened restrictions on sending agricultural items, he says.

Increased trade with Cuba could bring a much-needed economic boost to port cities at a time when communities are looking for ways to weather the recession.

"It would be good for everyone all around," says Steven Cernak, director of the Port of Galveston.

However, even if restrictions continue to relax, Cuba is drowning under large amounts of debt and has a reputation for not paying bills on time, Kavulich says. U.S. companies are willing to sell Cuba rice, poultry and other items allowed under the embargo because U.S. law requires Cuba to pay upfront, he says.

"There are always those who believe that Cuba represents a country like Saudi Arabia 90 miles south of the U.S., with unlimited resources," Kavulich says. "The reality is Cuba remains a bankrupt country."

A tariff... Now why didn't THEY think of that?

 

[Mr. H.]

Why don't we drill for hydrocarbons off the coast of Florida. That should boost the economies of port cities.

Oop. Cuba's already doing that. Nevermind.