The government of Mexico announced the opening of a quota for sugar exports to the United States for up to 489,324 tons during the period between October 1, 2020 and September 30, 2021.

The quota is based on the Agreement by which sugar exports are subject to prior permission and a maximum quota is established for its export (Agreement), published in the Official Gazette of the Federation (DOF), on October 5, 2017, in which it establishes a maximum quota to export to the United States of America, sugar originating in the United Mexican States derived from sugar cane or beet.

Point 13 of the Agreement determines the formula to determine the amount of the total sugar export quota for each sugar cycle, which will be determined in metric tons of crude value.

Said amount will be calculated in July of each year, will have ordinary adjustments in the months of September, December and March of each sugar cycle, and will be made known by the General Directorate of Trade Facilitation and Foreign Trade and the General Directorate of Light Industries of the Ministry of Economy, through notices published in the DOF.

Sugar exports

In this sense, and based on articles 34 section I of the Organic Law of the Federal Public Administration, 12 section IV, 32 sections VII section a) and XI and 33 sections I and IX of the Internal Regulations of the Ministry of Economy and Point 13 of the Agreement, the following notice is disclosed:

1.- The amount of the total quota as of July 2020 is disclosed for sugar exports from Mexico, derived from sugar cane or beet, during the period between October 1, 2020 and September 30, 2021, for 489,324 tons, to the US market.

2.- Considering the provisions in Point 13 of the Agreement, the amount was determined according to the following formula:

CTt = min [(Xt * Z), Yt]

Where:

CTt = Total quota calculated in July 2020.

Xt = Total US needs, based on the publication of the July 2020 Report on estimates of world agricultural supply and demand (WASDE), which can be consulted through the URL: https: //www.usda.gov/oce/commodity/wasde/wasde0720.pdf

Which is calculated as follows:

(Total use * 1,135) – initial inventories – cane and beet sugar production – imports under tariff-quota – imports under other import programs – (other imports as specified by WASDE in note 5 of the table called US Sugar Supply and Use (Supply and Use of Sugar in the United States) for other high level + others).

The amounts of the previous variables are the following: