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FLORIDA SUGAR CANE LEAGUE 

 NAFTA Statement 



September 20, 1993 



One of the most important things to remember about NAFTA, the North 

 American Free Trade Agreement, is that "Free Trade" is not necessarily "Fair Trade." 



The way NAFTA is now structured it will create an unfair competitive 

 situation that will destroy the U.S. domestic sugar industry, eliminate needed jobs, 

 and leave this nation's consumers susceptible to the vagaries and whims of foreign 

 suppliers. 



Under NAFTA, within six years a flood of Mexican sugar will depress U.S. 

 sugar prices and severely damage U.S. producers, as well as producers from the 39 

 traditional sugar supplying countries. 



Although NAFTA ties increases in Mexico's sugar exports to the U.S. to its 

 ability to achieve the status of a net exporter (when its domestic production exceeds 

 its own domestic consumption), it can easily achieve this status simply by 

 substituting less expensive corn sweeteners, or lower cost imported sugar, for use at 

 home, while shipping its own sugar production to the U.S. at a higher price. 



This is one example of how the volume based "safeguards" in the agreement 

 fail to address the realities of the market, the price sensitivity of commodities such as 

 sugar, and the cost advantages that are inherent in the economy of a third-world 

 country like Mexico. 



For instance, because Mexican sugar growers do not have to comply with the 

 same stringent environmental and labor laws that U.S. sugar growers must, they 

 have lower production costs. In essence, this difference constitutes a subsidy for the 

 Mexican grower. Traditionally such subsidies have been offset by tariffs. But 

 NAFTA will reduce and eliminate existing tariffs, without eliminating the unfair 

 Mexican subsidy. 



73-024 0-94-5 



