Agriculture, Rural Development, Food and Drug Administration, and Related Agencies

AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG ADMINISTRATION, AND RELATED AGENCIES APPROPRIATIONS ACT, 2006 -- (House of Representatives - June 08, 2005)

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Mr. SIMPSON. Mr. Chairman, I appreciate the gentleman yielding me this time.

First, let me talk about some of the comments that were just made and tell you that the world cost of production of sugar is about 16 cents, (not the 8.5 cents) is the world price. The world price is a dumped price. That means when a country overproduces sugar and cannot get enough money for it, it just dumps it on the market for whatever it can get. That is the dumped price. What happens, as the gentleman from Oregon said, this does not cost jobs in the United States.

The reality is that if you look at Mexico and Canada, right now the price of sugar in the United States is around 22 cents. The price of sugar in Mexico is 23 cents. The price of sugar in Canada is about 21 cents. These companies are not moving to these foreign countries because of the price of sugar.

The reason they are moving there is the same reason they are moving to Mexico, where Mexico will allow a company to move there, build their facility, employ their people, buy world-dumped-price sugar, and then sell it back into the United States but not allow it to be sold into Mexico to compete with their domestic sugar supply. That is what we are dealing with. We would allow free and fairer trade across the country, free trade and fairer trade in sugar, but this is not it.

I urge my colleagues to reject this amendment.

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