Pour Some Sugar On Me
Former Governor Pete du Pont's article in the Journal today goes right to InstantReplay's sweet tooth.The American sugar industry is so strongly advantaged by quotas, tariffs and subsidies that total sugar imports have declined by about a third since the 1990s. Cafta would allow additional sugar imports from the Central American nations totaling 107,000 metric tons in the first year. Annual U.S. sugar production is about 7.8 million metric tons, so the effect of Cafta is to raise sugar imports into America by about one day's sugar production, or as Mr. Portman puts it, "approximately one teaspoon of sugar per week per adult American."...Two strong arguments for ratifying CAFTA over the objections of the muscular sugar lobby are contained herein. First of all, the increase in sugar imports would be marginal and phased in. Second, sugar imports may not be such a good thing for the sugar industry, but they're good for the rest of us who consume products that include sugar.
American sugar prices today are about three times the world market's, so some price reduction would be good for Americans, just as lower gasoline prices would be.
The more important argument for CAFTA is also made: it would reduce barriers to American exports, essentially leveling the playing field between us and the Central American countries.
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