Mexico has decided to cancel the sugar export permits for the America, after the long dispute.
The permits for sugar export between Mexico and USA were cut my Mexico officials in order to escape the pace of shipments dispute.
At the first sight, it is not very clear what this cancellation could mean to the USA. The document was sent to mills from the sugar chamber of Mexico this Monday. And permits, according to this document, would be changed in April.
Mexico has gathered a huge harvest of sugar, and the mills are working day and night right now. The number of sugar that Mexico sends to its American neighbor usually depends on the harvest. The last official agreement for 2016-2017 years suggests 820 00 tons quota.
It is not the secret that good relations between both countries were over after Donald Trump came in, promising his electors to build a wall around the USA, and throw away all the emigrants, breaking official partnership with Mexico and Canada. After he became the new president, Trump did not renegotiate the NAFTA. Still, he still has the same intentions towards Mexico.
Ministry of Economy in the USA says that they cannot comment the current situation. And the officials from Mexico can’t be reached. It is not clear for now how many sugar export agreements were canceled and whether there will be penalties for Mexico and on what terms.
The current situation with the Mexico and Trump makes the negotiations harder.