315. Letter From Secretary of State Shultz to the United States Trade Representative (Brock)1
I am writing to seek your support for reducing the duty on sugar from its present statutory maximum rate of 2.812 cents per pound to the minimum rate of 0.625 cents.
This Administration’s commitment to reduce trade barriers argues against maintaining the statutory maximum duty while we also maintain a system of quantitative import restraints on sugar. As you know, the present duty level plays no role in defending the domestic sugar price support system as long as quotas are in place. Moreover, almost 68 percent of our sugar imports are already entering duty free under the provisions of our Generalized System of Preferences (GSP) and the Caribbean Basin Economic Recovery Act (CBERA). However, important trading partners, such as Brazil and the Philippines, are required to absorb the higher duty level, reducing their earnings from an export commodity of considerable importance to their balance of payments positions. Consequently, this would help to remove an irritant in our trade relations with these important countries.
I hope you will agree that it is now time to redress the situation to the extent possible under the law and to reduce our sugar tariff.
I look forward to your support in this effort.
Sincerely yours,