Carter, Leads Call for Section 301 Investigation into Unfair Sugar Trade Practices

Members of Congress Press for Action to Protect U.S. Sugar Producers from Predatory Trade Practices

WASHINGTON, D.C. – This week, Congressman Troy A. Carter, Sr. (D-LA) and Congresswoman Julie Fedorchak (R-ND) joined Senators John Hoeven (R-ND) and Elissa Slotkin (D-MI) to send a bipartisan, bicameral letter, along with 112 of their colleagues, in support of efforts by U.S. Trade Representative (USTR) Ambassador Jamieson Greer to utilize a Section 301 investigation into unfair and discriminatory trade practices by foreign sugar-producing countries. They call on USTR to take appropriate action to protect American sugarbeet and sugarcane farmers, processors, refiners, and factory workers from being undercut by discriminatory foreign trade practices. In the letter, the members of Congress:

Highlighted that the tier two tariff, meant to defend U.S. sugar production from being undercut by discriminatory foreign trade practices, has not been updated in 26 years and has become wholly ineffective.Noted that the erosion of the tier two tariffs has led to a more than 700 percent increase in out-of-quota sugar imports between Fiscal Years (FY) 2021 and 2025 compared to the prior five-year period.Highlighted a recent study by the North Dakota State University (NDSU) Agricultural Risk Policy Center analyzing the impact of over-quota sugar imports on domestic sugar prices, which found that Tier-2 imports depressed U.S. domestic raw sugar prices and resulted in an estimated loss of up to $1.8 billion for the domestic U.S. sugar industry last year.Cited peer-reviewed research published in the Journal of Agricultural and Applied Economics that confirms the retail prices of sugar-sweetened foods are not driven by the cost of sugar.Urged Ambassador Greer to take action to level the playing field for U.S. producers, including imposing tariffs sufficient to return sugar imports to historic norms.

“The sugar farming families and workers across our States support more than 151,000 jobs in more than two dozen states while generating more than $23 billion in economic activity each year. We are gravely concerned about the surge in unfairly traded foreign sugar imports, which, along with higher input costs, are plunging the domestic industry into crisis and presenting an imminent threat to the industry’s long-term viability,” the Members wrote.

“U.S. sugar policy is a necessary response to a global playing field where foreign countries routinely sell sugar at well below the world cost of production… In the past 10 years, 14 percent of our nation’s beet sugar processing facilities and 12 percent of our domestic cane sugar mills and refineries have closed, including the complete loss of sugarbeet farming in California (2025) and sugarcane farming in Hawaii (2016) and Texas (2024). Absent action to protect the domestic sugar industry from discriminatory foreign trade practices, these continued revenue losses will only mount, threatening the future existence of domestic U.S. sugar production. We strongly urge you to investigate these unfair trading practices that disadvantage our domestic sugar industry and take decisive action as appropriate.”

Read the full letter here.

The following organizations have endorsed the letter: Amalgamated Sugar Company, American Crystal Sugar Company, American Farm Bureau Federation, American Sugar Alliance, American Sugar Cane League, American Sugar Refining, Inc., American Sugarbeet Growers Association, Big Horn Basin Beet Growers Association, Big Horn County Sugar Beet Growers Association, Colorado Sugarbeet Growers Association, Elwyhee Beet Growers Association, Florida Crystals Corporation, Florida Sugar Cane League, Michigan Sugar Company, Minn-Dak Farmers Cooperative, National Council of Farmer Cooperatives, National Farmers Union, NebCo Beet Growers Association, Nebraska Sugarbeet Growers Association, Red River Valley Sugarbeet Growers Association, Snake River Sugarbeet Growers, Southern- Minnesota Beet Sugar Cooperative, Southern Montana Sugarbeet Growers Association, Sugarcane Growers Cooperative of Florida, US Beet Sugar Association, US Sugar, Western Sugar Cooperative, Wheatland Beet Growers Association, Wyoming Sugar Company, Alma Plantation, Cajun Sugar Company, LLC., Cora Texas Manufacturing Co, Enterprise Factory, Lafourche Sugars Corp, Louisiana Sugar Cane Co-op, Lula Sugar Factory, Raceland Raw Sugar Corp, St. Mary Sugar Co-Op, Sterling Sugars, and Westfield Sugar Factory.

Background:

Sugarcane production is a cornerstone of Louisiana's economy and culture, generating billions of dollars in economic impact annually. Louisiana’s sugarcane industry is why New Orleans proudly hosts the Sugar Bowl each year. Approximately 13 million tons of sugar cane are produced on more than 400,000 acres of land in 22 Louisiana parishes. Much of the cane is processed at the 11 raw sugar factories in the state. The industry supports roughly 17,000 jobs through the production and processing of sugarcane in Louisiana.

Last week, Congressman Carter and Congressman Higgins (R-LA) sent a letter to U.S. Trade Representative (USTR) Ambassador Jamieson Greer urging a Section 301 investigation into unfair practices harming the American seafood industry. Read that full letter here.