CCC Reopens Exchange for Refined Sugar Reexport Credits
The Commodity Credit Corp. said it will again buy sugar in exchange for Refined Sugar Re-export Program credits, in response to record domestic sugar production and low prices. The action will reduce the costs associated with acquiring sugar that has been forfeited because of producers’ inability to repay Sugar Program loans, CCC said.
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The U.S. Department of Agriculture exchange lessens sugar imports and "is designed to reduce the sugar surplus, a less costly option than loan forfeitures," the agency said in a press release (here). Under the exchange "private sector exporters and traders to voluntarily exchange Trade Promotion Agreement Certificates of Quota Eligibility granted under the U.S.-Colombia TPA and the U.S.-Panama TPA for Commodity Credit Corporation stocks," it said. "A valid TPA CQE is required for the import of sugar into the United States under a TPA sugar tariff-rate quota, and thus each TPA CQE represents a given quantity of import access."
(Federal Register 07/29/13)