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The reallocation of WTO tariff-rate quota volume for raw cane sugar will happen for fiscal year 2023.

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raw cane sugar TRQs being reallocated
The Office of the US Trade Representative is reallocating the unused country-specific quota allocations under the tariff-rate quotas (TRQs) on imported raw cane sugar for Fiscal Year 2023 (Oct. 1, 2022 Sept. 30, 2023).Image courtesy of iStock/Getty Images

The Office of the US Trade Representative is reallocating the unused country-specific quota allocations under the tariff-rate quotas (TRQs) on imported raw cane sugar for fiscal year 2023 (Oct. 1, 2022 – Sept. 30, 2023).

The announcement came on on March 13, 2023. TRQs allow countries to export specified quantities of a product to the US at a relatively low tariff but subject all imports of the product above a pre-determined threshold to a higher tariff.

The National Confectioners Association made a statement in response to the reallocation news:

“While there is still work to be done to fully correct current market conditions, this step towards easing the historically tight sugar supply offers an opportunity for a positive outcome for the confectionery industry. We are grateful to the USTR, as well as their partners at USDA, for their timely action to help navigate these challenging supply chain conditions and ensure that confectionery manufacturers can continue to employ the thousands of American workers who make America’s favorite treats.”

A little background of the TRQs:

On July 11, 2022, the USDA announced the establishment of the in-quota quantity for raw cane sugar for FY 2023. The in-quota quantity for the TRQ on raw cane sugar for FY 2023 is 1,117,195 metric tons raw value (MTRV), which is the minimum amount that the US is committed under the World Trade Organization Agreement.

Ten days later on July 21, 2022, USTR provided notice of country-by-country allocations of the FY 2023 in-quota quantity of the WTO TRQ for imported raw cane sugar. However, after consultation with quota holders, USTR has determined to reallocate 224,240 MTRV of the original TRQ quantity from those countries that have stated they do not plan to fill their FY 2023 allocated raw cane sugar quantities.  USTR is allocating the 224,240 MTRV to the following countries in the amounts below:

Country

FY 2023 Raw Sugar Unused Reallocation (MTRV)

Argentina

12,682

Australia

24,479

Barbados

500

Belize

3,244

Bolivia

2,360

Brazil

42,765

Colombia

7,078

Costa Rica

4,424

Dominican Republic

40,000

Ecuador

3,244

El Salvador

7,668

Eswatini (Swaziland)

4,719

Fiji

2,654

Guatemala

14,157

Guyana

3,539

Honduras

2,949

India

2,360

Malawi

2,949

Mauritius

3,539

Mozambique

3,834

Panama

8,553

Peru

12,092

South Africa

6,783

Thailand

4,129

Zimbabwe

3,539

The allocations of the raw cane sugar WTO TRQ to countries that are net importers of sugar are conditioned on receipt of the appropriate verifications of origin. Certificates for quota eligibility must accompany imports from any country for which an allocation has been provided.

About the Author(s)

Powder Bulk Solids Staff

Established in 1983, Powder & Bulk Solids (PBS) serves industries that process, handle, and package dry particulate matter, including the food, chemical, and pharmaceutical markets.

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