Spoonful of Sugar Needed to Stomach U.S. Trade Policy

Jane Abel / April 06, 2011

Early American colonists, no strangers to the perils of intrusive government, protested the Molasses Act of 1733, which imposed taxes on imported sugar, rum, and molasses. Sugar taxes ignited a desire for trade freedom that helped lead to revolution.

In the United States today, sugar policy consists of regulations and limitations that put those of the Molasses Act to shame. In an attempt to protect domestic sugar producers from competition, the government has destroyed U.S. jobs in the candy and confectionary industries, increased prices for consumers, and undermined the American tradition of capitalism.

The U.S. government limits the market by placing quotas on the amount of sugar that can be imported and harsh tariffs on imports surpassing those quotas. As a result, American buyers paid 62.86 cents per pound for refined sugar in 2010, when the world price was only 27.78 cents.

In 2010, imports accounted for only about 23 percent of U.S. sugar consumption. Producers in other countries remain more than willing to sell their sugar for a fraction of the price U.S. sugar buyers are forced to pay. (more…)