Council Argues Against Protective Action on Sugar

by Council on Wage and Price Stability on October 20, 1976
by Council on Wage and Price Stability

 

Protective import action on sugar, in the form of increased tariffs or restrictive quotas, would be inflationary and costly to consumers according to the Council on Wage and Price Stability. The Council recommended against protective action of this type in comments filed before the International Trade Commission.

The ITC is currently undertaking an investigation relating to sugar under section 201 of the Trade Act of 1974. This investigation was initiated at the request of both the Senate Finance Committee and the President. On September 21, 1976, the President announced a tripling of the duty on imported sugar (from 0.625 cents to 1.875 cents per pound) as an interim measure. The Council’s comments were directed to any permanent action under consideration by the ITC.

Acting Director William Lilley III stated, “Although we understand the problems which sugar producers face when prices are low, it is important to be aware that whatever benefits producers would gain as a result of some protective action would be outweighed by the costs to other segments of society, particularly consumers. Any action of this sort always involves a net loss.”

 

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