U.S. Sugar Industry Must Be Protected

The April 16 editorial, “Sugar-Coated Nonsense,” displayed a misunderstanding of the U.S. sugar program and global trade in sugar. U.S. beet sugar farmers have the world’s third-lowest cost of production, and two-thirds of the world’s cane sugar producers have higher costs than U.S. growers.

As a result, American consumers enjoy prices 23% lower than the average cost in other developed countries. However, virtually every major producer uses barriers and indirect subsidies to protect domestic sugar production, making the world sugar market the second-most distorted agricultural commodity in the world (after rice), according to the Organization for Economic Cooperation and Development.

Until we reach a global agreement to eliminate these distortions, the U.S. sugar program keeps our growers from being put out of business by subsidized foreign producers. Unfortunately, the Central America Free Trade Agreement puts this program at serious risk. In combination with commitments under the World Trade Organization and the North American Free Trade Agreement, CAFTA requires the U.S. to import enough sugar to fundamentally destabilize the U.S. sugar program.

And, despite The Times’ suggestion to the contrary, it will do nothing to keep jobs in this country. The reason candy makers are moving overseas has nothing to do with the cost of sugar and everything to do with lower labor costs. And by making U.S. direct investment in Central America more secure, CAFTA will only make such moves more attractive to the candy industry. CAFTA unnecessarily puts a successful U.S. industry and American jobs at serious risk. That’s a serious mistake, and we are committed to fighting it.

Sen. Kent Conrad

D-N.D.

Sen. Larry Craig

R-Idaho