Suspension Agreements

The U.S.-Mexico Sugar Suspension Agreements are bilateral trade arrangements that replaced free trade in sugar with a system of government-managed import limits and minimum price requirements on Mexican sugar exports to the United States. Originally negotiated in 2014 and later amended in 2017, 2019 and 2020, the agreements suspend antidumping and countervailing duty investigations in exchange for strict volume controls, guaranteed floor prices and other conditions governing how and when Mexican sugar may enter the U.S. market.

The suspension agreements directly affect both the availability and cost of sugar in the U.S. market. Understanding the agreements is essential to developing smart and effective sugar policy, including the reallocation of tariff rate quotas (TRQs) and the establishment of domestic marketing allotments.