Trade house Sucres et Denrees (Sucden) Americas Corp said on Thursday it has contracted to buy 275,000 tonnes of sugar from mills owned by the Mexican government that will be exported globally, amid a months-long trade dispute with the United States.
"It shows Mexico's commitment to export to the world market," said Thierry Songeur, president and chief executive of Sucden Americas Corp in Miami. Songeur declined to comment on price and terms but said the sugar is from government-owned mills in Mexico that are managed by Fund of Expropriated Companies from the Sugar Sector (FEESA). The raw sugar called "estandar" will come from the 2014/15 crop, which begins in December, he said. The purchase comes as a trade dispute between Mexico and the United States continues after US sugar producers filed a complaint in March accusing Mexico of dumping sugar in the US market. In July, 17 US senators urged the Commerce Department against striking a deal that would impose quotas on Mexican sugar imports on the grounds that such an agreement would violate their current commitment to free and open trade.