The Impact of Globalization and Free Trade on the U.S. Sugar Policy Essay - 1

The Impact of Globalization and Free Trade on the U.S. Sugar Policy - strain ExampleThe larger economies will at some(a) point influence those not globally invested as their performance begins to evolve and shape the global fiscal markets.There may be no other free-trade policy like the U.S. sugar program that illustrates such hypocrisy, and the need for reform. The United States has often prided itself as a world leader in terms of the free trade movement. The culture has always pushed for Globalization and the use of technology to integrate economies. However, there are some industries that remain well protected due to the strength of forceful interest groups and absence of pressure to reform. These protection barriers often hurt our domestic economy and correct the efforts to promote more open markets and trade negotiations around the world.The U.S. Sugar policy operates under the Farm Bill, which was overwhelmingly passed in 2008 by Congress. The basic premise git the sugar po licy is that supply should equal demand. The U.S. Department of Agriculture has imposed several tools in order to ensure that the sugar policy operates at a minimum cost to the taxpayers. These tools are that first, they can limit foreign imports to those required in the trade agreement obligation with the exception of Mexico second, they can control the tally of sugar the U.S. American farmers are allowed to sell and third, the bill can divert any excess surplus of sugar into ethanol production. (American Sugar Alliance) These tools and policies such as the preferential loan agreements and tariff rate quotas, serve to effectively keep foreign sugar out of the U.S. In return this forces the price of sugar in our market to increase substantially.