CHICAGO – Canadian consumers are likely to experience sugar shock this fall when they buy products made with refined sugar — and not only food. Pharmaceuticals and chemicals using sugar will probably cost more as well.
The reason is an anticipated increase on sugar duties for U.S. companies exporting sugar to Canada. The Canada Border Services Agency (CBSA) is likely to take this measure to level the playing field for Canada’s sugar manufacturers, which are contending that U.S. exporters sell refined sugar at a lower price in Canada than in the U.S.
This practice, called “dumping” in the international trade industry, can create an unfair advantage for the exporting country that is dumping its product in another country at lower than market price. Dumping can result in reduced prices, lost sales and decreased profits for companies in the country where the dumping is taking place.
The current sugar anti-dumping duty rate is 78 percent for most U.S. sugar exporters. Livingston Regulatory Affairs experts expect that when the CBSA finishes its investigation around Sept. 4, the rate of anti-dumping duty for most U.S. sugar exporters will be 180 percent – more than double. The cost of this increase would be passed along to Canadian consumers.
Products manufactured with granulated, liquid or powdered refined sugar made from sugar cane or sugar beets would be affected. In addition to the United States, the Canadian government would impose the anti-dumping duty on sugar from Denmark, Germany, the Netherlands and the United Kingdom.
About Livingston
North America’s number one company focused on customs brokerage and trade compliance, Livingston International also offers trade consulting, global trade management and international freight forwarding. Livingston employs over 3,200 staff at 125 key border points, sea ports, airports and other strategic locations across North America, Europe and Asia.
For more information, contact:
Pat Stanghieri Bridget Stratton
Livingston International PCI
1-800-387-7582 ext. 3292 312-558-1770 ext. 158
pstanghieri@livingstonintl.com bstratton@pcipr.com