Mexico Increases Taxes on Sugar Imports

The Mexican government issued a decree to modify import tariffs for sugar, a move aimed at protecting the national sugarcane agro-industry from the effects of domestic oversupply and falling international prices.

The new decree changes the tariffs for specific sugar tariff classifications. The previous specific tariffs, which ranged from US$0.338/kg to US$0.39586/kg, will be replaced by ad-valorem tariffs of 156% and 210.44%, depending on the specific tariff fraction.

According to the text of the decree, the national sugarcane industry is facing a domestic oversupply that is putting the profitability and viability of the entire productive chain at risk. The government has determined that the existing import tariff currently does not provide sufficient protection, given the decline in international prices for the product.

The decree states that the action is based on Art. 131 of the Mexican Constitution, which allows the Executive Power to modify tariffs when deemed urgent to regulate the economy and protect national production. “The modification of tariffs constitutes a tool to protect productive sectors against distortions in international trade,” reads the decree. 

The government also stated that the new measure is in accordance with Mexico's commitments within the World Trade Organization (WTO) and other international trade treaties. The new tariffs were reviewed and received a favorable opinion from the Foreign Trade Commission.