Scott Perry on Free Trade

Sponsored sugar quotas & import tariffs to stabilize prices.

Congressional Summary:Sugar Reform Act:

• Requires that sugar allotments be appropriate to maintain adequate supplies at reasonable prices, taking into account all domestic supply sources, including imports.
• Revises sugar tariff-rate quota adjustment provisions so that the ratio of sugar stocks to total sugar use at the end of the quota year will be approximately 15.5%
• Extends flexible marketing sugar allotment authority through crop year 2017
• Repeals the feedstock flexibility program for bioenergy producers.

Proponent's argument for bill:(Senators' opinions reported on politico.com) "We subsidize a handful of wealthy sugar growers at the expense of everybody in America," said Sen. Patrick Toomey (R-Pa.), whose home state boasts the chocolate giant, Hershey's. Sen. Heidi Heitkamp (D-N.D.), warned her colleagues against unraveling the commodity coalition behind the farm bill: "We forget that this is much bigger than a sugar program. It's much bigger than any one single commodity. When you single out one commodity, you threaten the effectiveness of the overall farm bill."

Opponent's argument against bill:(Food and Business News, May 2013): Users claim the sugar program nearly doubles the price of sugar to US consumers and has resulted in lost jobs as some candy manufacturers have moved operations to other countries. Producers claim the program has resulted in more stable sugar supplies, provides a safety net for growers and that world prices are often lower because of subsidies in origin countries, which would put US growers at a disadvantage should import restrictions be lifted. Producers also note that US sugar prices have declined more than 50% from late 2011 highs. They also maintain that jobs have been lost or moved out of the US for reasons other than sugar prices, mainly labor and health care costs, noting that candy makers' profits have been strong in recent years.