Competitive Enterprise Institute | 1899 L ST NW Floor 12, Washington, DC 20036 | Phone: 202-331-1010 | Fax: 202-331-0640
Christine Hall, 202.331.2258
March 30, 2011, Washington, D.C. – Legislation introduced today by Sen. Richard Lugar (R-IN) marks a bold step towards repealing the U.S. sugar program – a program that relies on price supports, restrictions on domestic supply, and import quotas to raise sugar prices about twice those on the world market.
The sugar program is a central planning system that makes consumers pay more for many foods and beverages, means real jobs loss in sugar-using companies, and shuts developing countries out of important markets.
While the arguments for reforming the US sugar program are compelling, big sugar producers have so far been able to fend off all reforms. Government continues to prop up sugar prices, to limit sugar imports, and to provide the industry with special loans on special terms. Senator Lugar’s bill addresses all of these excesses of a bloated program, which benefits a few at the expense of the many. Effective 2012, his bill would prohibit the price support program, eliminate domestic marketing allotments, abolish sugar tariffs and allow free trade in sugar.
The sugar program is now over 75 years old. Reform is long overdue.