The U. S. Sugar Quota

THE US SUGAR QUOTAS

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In the bid to regulate the amount of sugar imported into the United States , the federal Government imposed a quota that gave limited exclusive rights of export to a few countries . These countries range from Brazil , Philippines , Peru and Colombia among others . The logic behind this move was to protect the United States infant sugar industry from the competition from foreign farmers that enjoy more conducive environment for surplus production . It was also in the bid to appease

farmers from Louisiana territory . This was in spite of the fact that experts had warned that sugar growing in the United States would be impeded by the harsh environment . Others argued that the tariffs by the 1820s had to be maintained so as to maintain a high demand and the value of slaves

The imposition of sugar tariffs and quotas is supposed to help in subsidizing sugar growing . These sugar quotas continue to have negative impacts . It has to be understood that this is a costly system to the consumers and the taxpayers . The United States has maintained a very high price for its sugar , higher above the international price in sixth fold . James Bovard notes that each 1-cent increase in the price of sugar adds between 250 and 300 million to consumers ' food bills He continues to note that a study conducted by one commerce department found out that sugar program was costing American consumers more than 3 billion a year (1998

The quota after its imposition single-handedly handed blows to other types of businesses . Brazil in a retaliatory stance reduced significantly its consumption of the American grain . Other countries that were relying on sugar exports to America resorted to wheat and corn , stiffening the competition that exists between the American and other countries . Candy producers have also been hit the worst Initially , candy firms were circumventing the sugar quota by importing products high in sugar and then sifting the sugar , the federal government made a crackdown on this . Now , these firms are being forced to compete with their foreign counterparts who apparently have access to cheap sugar and hence cheap chocolate has increased , hurting the local industries

A number of people in the United States have lost jobs due to the sugar quotas . This number is higher than the number of farmers that the quota purports to protect . According to James Bovard , a commerce department had it that the high price of sugar destroyed almost 9 ,000 US jobs in food manufacturing since 1981 ' An example is given of one Branch Candy Company that relocated to Canada terminating over three thousand workers contracts

It remains the opinion of the majority that the sugar quota is not only hurting the multilateral tie that the United States has enjoys with the neighboring countries , it is also exploitative to the consumers . It is the high time that these quotas were abolished and the sugar plantations converted to other viable crops

The taking over the...