News & Events - Archived News

[ Up ]

RUPERT -- The Senate Finance Committee on Wednesday approved an amendment that would put a stop to circumvention schemes designed to get around tariff-rate quotas on sugars, syrups and sugar-containing products.       President of the Idaho Sugarbeet Growers Association, Perry Meuleman of Rupert, said sugarbeet growers have had four years of frustrating problems regarding the stuffed molasses loophole in the tafiff rate quota.       "Once that is through we will never have to worry about stuffed molasses again," he said. "This stops about 125,000 tons of stuffed molasses from coming in."       He also praised work of Senator Larry Craig related to recent Senate Finance Committee action.       "Although Sen. Larry Craig (R-ID) is not a member of the Senate Finance Committee, where this amendment was       considered ... , no one has worked harder with Senator Breaux to get this problem resolved than Senator Craig," Meuleman said. "He has spent four years, I know, pursuing this stuffed molasses circumvention scheme, determined to get it stopped. He can take pride in the progress made today, and those of us in the American sugar industry thank him."       John Schorr, ag manager for Amalgamated Sugar company Paul facility, said the decision is good news and a step in the right direction.       "When you have circumvention of the market it puts downward pressure on the price," Schorr said. "Now normal marketing can occur."       The decision can strengthen the price of sugar, he added.       "Circumvention had a far-reaching affect on the growers," Schorr said.       The amendment was offered by Sen. John Breaux (D-LA) and Sen. Craig Thomas (R-WY), and had the support of Finance Committee Chairman Max Baucus (D-MT), as well as the majority of the members of the committee.       Under the amendment, the Secretary of Agriculture will have the clear legal authority to halt products created solely to circumvent U.S. tariff laws. The Secretary will be able to do this without time-consuming and expensive court proceedings. The most infamous of the sugar tariff circumvention products has commonly been referred to as stuffed molasses. The debate revolves around a molasses syrup containing liquid sugar that has been shipped into the U.S. from Canada. The sugar was then extracted and sold, and then the molasses was shipped back to Canada to repeat the stuffing process.       "But there are other products designed to evade legitimate import tariffs, and these schemes are limited only by the imagination of the mind of man," said Dalton Yancey, Chairman of the American Sugar Alliance. "Today's action addresses the circumvention problem in a comprehensive and logical fashion," he added.       The Breaux-Thomas amendment "sends a signal to the sugar marketplace that circumvention of U.S. import laws will not be tolerated and it discourages the creation of products similar to stuffed molasses," Breaux said in a briefing paper accompanying the amendment.       The amendment was attached to the Trade Adjustment Assistance bill, S. 1209. The committee now waits for the scheduling of floor time for Senate consideration of the bill.       Jackie Theriot, a sugarcane grower and sugar mill operator from St. Martinville, Louisiana, and chairman of the American Sugar Cane League, had high praise for the work Breaux has done on the amendment.       "Senator Breaux and his staff have worked diligently, and tirelessly, to get this amendment attached to the proper bill so that schemes by those who would mock U.S. tariff rules can be stopped. Today was a big step forward for all of us who want to see our laws upheld, and we owe sincere thanks to Senator Breaux for this victory."       In Billings, Montana, Rick Dorn, chairman of the board of Rocky Mountain Sugar Growers Cooperative, had high praise for Finance Committee Chairman Baucus.       "Senator Baucus has been understanding and supportive of our efforts to get the sugar import quota circumvention problems solved, once and for all. Without his guidance on the committee, the amendment wouldn't have been successful today."       In Worland, Wyoming, Richard McKamey, president of the Washakie Beet Growers Association, gave a ringing endorsement to the amendment's co-sponsor, Sen. Thomas.       "All of us who farm sugar beets, sugarcane, and corn for sweetener, owe a debt of gratitude to Craig Thomas for       co-sponsoring this amendment that, when it gets all the way through Congress, will put an end to those who try to make a sham out of our laws, hurting the entire American sweetener industry and the consumers who depend on us for a quality supply of sweeteners at reasonable costs."       Sen. Kent Conrad (D-ND), a member of the Finance Committee, was praised by Paul Mathiason of Grand Forks, North Dakota, Vice President of the American Sugarbeet Growers Association.       "Senator Conrad has worked with us all along to close the stuffed molasses loophole and to get in place a comprehensive solution to the problem of sugar import quota circumvention. He has been most supportive in this long struggle," Mathiason said. "Today, I know, is a happy day for him because of the progress he sees being made, and it is certainly a happy day for sugar beet farmers throughout the Red River Valley."