Representatives Kat Cammack and Dan Kildee Introduce Resolution To Zero Out Harmful Foreign Sugar Subsidies

WASHINGTON, D.C. – Today, Representatives Kat Cammack (R-FL-03) and Dan Kildee (D-MI-08) introduced a resolution to zero out the foreign subsidies that make sugar the world's most distorted commodity market. The resolution promotes sound, fair sugar policy that protects domestic producers against foreign abuses, eliminating America's no-cost sugar policy in exchange for the elimination of all foreign sugar subsidies.

"Time and again, the survival of American sugar producers is threatened by the unfair practices and dumping of cheap sugar subsidized by foreign countries. Free trade must also be fair trade, and we should not abandon our own production capabilities in favor of cheap imports that destroy our domestic markets and American producers' livelihoods. Food security is national security and I'm pleased to join Rep. Kildee on a bipartisan resolution that levels the playing field and preserves our family operations," Congresswoman Cammack stated.

Foreign countries including Brazil, India, Thailand, Russia, Mexico, and the European Union have subsidized artificially cheap sugar on the global market at the expense of the American sugar industry.

"American sugar farmers are the best in the world, but they need a fair playing field to compete in the global marketplace. Unfortunately, other countries like Brazil, Thailand and India have poor labor standards, unfair sugar subsidies and regularly dump their surplus sugar on the world markets, posing a threat to American family farms," Congressman Kildee said. "That’s why we need an American sugar program that supports our farmers. I am proud to introduce this bipartisan resolution to combat unfair trade practices and protect Michigan and American farmers."

Brazil provides direct and indirect subsidies of at least $2.5 billion/year; India provides at least $1.7 billion/year in subsidy supports for its inefficient sugar industry, Thailand has more than tripled its sugar exports since 2004 with $1.3 billion/year in subsidies and government price-fixing.

"In any head-to-head competition, American sugarbeet and sugarcane producers come out on top. We are among the most efficient in the world while having some of the highest standards for labor and sustainability. But our 151,000 family farmers and skilled workers can’t compete fairly if foreign governments spend billions of dollars on subsidies to prop up their domestic industries and arbitrarily depress the price of sugar. For the past decade, the world price has been half the cost of production, a clear sign that the global market is distorted," said Ryan Weston, Chairman of the American Sugar Alliance. "Representatives Cammack, Kildee, Higgins, Franklin, and Letlow’s common-sense approach to free and fair-trade policy puts producers around the world on equal footing. American farmers just want a fair shake so we can preserve family farms and good-paying jobs, and make sure Americans have this essential ingredient whenever they need it and at a price they can afford."

At the time of introduction in the 118th Congress, the resolution's original cosponsors include Representatives Cammack, Kildee, Franklin, Higgins, and Letlow.

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