Mexico has canceled existing sugar export permits to the United States to avoid penalties in a dispute over the pace of shipments, a document seen by Reuters said, partly blaming the issue on unfilled positions at the U.S. Department of Commerce.
It was not immediately clear what impact the cancellation would have on exports to the United States. The document, sent by Mexico’s sugar chamber to mills on Monday, said existing permits would be reissued in April.
Mexico’s sugar mills are currently in full swing at the height of the harvest. The amount of sugar sent to the United States varies from season to season, with the document referring to a quota of 820,000 tonnes in 2016/2017.
Ties between the United States and Mexico have frayed under Donald Trump, who sees trade skewed to favor the southern neighbor and is seeking to renegotiate the North American Free Trade agreement.