Mexico imposes steep tariffs on sugar imports to control domestic oversupply

Mexico has imposed steep tariffs ranging between 156% and 210.44% on sugar imports, in an effort to protect domestic production and restore conditions of fair competition.

The new import duties are effective Tuesday and will apply to products coming from World Trade Organization (WTO) member countries that do not have standing trade agreements with Mexico.

According to a decree published Monday in the Official Gazette (DOF), a 210.44% tariff will be placed on refined liquid sugar and invert sugar. Other forms of sugar, such as beet and cane sugars, will see new tariffs of 156%.

“In response to falling international prices and oversupply, and in accordance with our country’s international commitments, sugar import tariffs have been updated to protect jobs, strengthen production and the domestic market and ensure the stability of thousands of families who depend on this strategic sector,” the Ministry of Agriculture and Rural Development (Sader) wrote in a post on X.

During the 2024-2025 sugar cycle (October-September), domestic sugar consumption was estimated at 3.9 million tonnes, while production reached 4.7 million tonnes. Added to this are inventories of 1.4 million tonnes, for a total supply of 6.1 million, forcing Mexico to sell its surplus in international markets at very low prices.

a worker cutting sugar cane in Mexico
The Mexican sugar industry generates over 440,000 direct jobs and benefits more than 15 million people nationwide. (Margarito Pérez Retana/Cuartoscuro)

“The federal government has the obligation to implement the necessary mechanisms to create stability in national industrial sectors and eliminate distortions in international trade,” the decree says.  

The Mexican sugar industry is essential for the country’s economic and social development. According to official data, it generates over 440,000 direct jobs and benefits more than 15 million people across 267 municipalities in 15 states. 

The sugarcane production chain — which includes everything from planting to marketing — serves as a vital source of income in rural areas, where few economic activities are as stable or profitable. Furthermore, estimates suggest that the sugar industry indirectly generates over 2.2 million jobs in agricultural sectors, transportation, distribution and associated small businesses.

Next year, the federal government also plans to increase the tax on sugary beverages to 3.08 pesos per liter – a significant increase from this year’s 1.64 pesos. With this increase, Mexico expects to collect approximately 41 billion pesos (US $2.2 billion) in 2026, which the government says will be allocated entirely to the Health Ministry’s budget.

With reports from La Jornada and El País

1 COMMENT

Have something to say? Paid Subscribers get all access to make & read comments.
Paseo de la Reforma

Mexico City’s mayor announces a World Cup parade along Reforma for June 13

0
The parade is Mayor Brugada's latest project in her ongoing campaign to expand the World Cup from a global sporting event to a spectacular celebration of the capital's culture and status as a world-class city.
Gerardo Mérida

NY judge sees ‘abundant’ evidence against Sinaloa’s former top security official

2
Former Sinaloa state Security Minister Gerardo Mérida is one of 10 Mexican officials recently accused by the United States of cartel ties, including former Sinaloa Gov. Rubén Rocha.
habaneros

Yucatán Peninsula states create habanero council to protect the famous pepper

0
The council will be responsible for guaranteeing the traceability, certification and quality of habanero, as well as promoting it in national and international markets.
BETA Version - Powered by Perplexity