Allegations of sugar smuggling and a brewing industry conflict involving a company with a significant refinery in Hamilton, Ont., have resurfaced amid a U.S. ban on Canadian molasses imports.
While disputes over dairy, automobiles, and alcohol have been predominant in the ongoing Canada-U.S. trade disagreement during President Donald Trump’s second term, the recent decision to ban molasses imports by the U.S. has raised eyebrows.
Effective September 29, the ban will coincide with restrictions on motorcycles, certain alcoholic beverages, and some dairy items.
The ban follows persistent efforts by American sugar producers to urge the government to impose higher tariffs on foreign sugar products, citing competition from lower-priced alternatives from other nations.
American sugar producers are targeting Canadian refineries, alleging that these facilities are importing sugar mixes under the guise of pure molasses to bypass sugar tariffs and quotas.
‘Closing the spigot’
Sugaright, a division of CSC Sugar based in Connecticut, highlighted the need to halt the influx of diluted Canadian molasses at the International Sweetener Symposium held in Vail, Colo., this summer.
According to a blog post on Sugaright’s website, the U.S. sugar industry and the federal government are committed to ending the alleged practice of disguised molasses importation.
The issue traces back to the 1990s when a Michigan-based company, Heartland By-Products, mixed molasses with sugar and water at a facility in Ontario to exploit tariff exemptions. Despite its legality, pressure from the sugar industry led to the company’s closure in the 2000s.
Contrary to industry claims, recent USDA reports indicate a decline in molasses imports for sugar extraction, with projections showing minimal imports in the upcoming year.
Company dismisses allegations
Sucro’s chair, Don Hill, dismissed accusations targeting his Florida-based company with a major refinery in Hamilton, emphasizing legitimate operations and accusing detractors of creating negative associations.
Hill revealed that Sucro ceased U.S. molasses imports following the completion of a new refinery in Hamilton, redirecting focus to the Canadian market.
The American Sugar Alliance, representing major U.S. sugar producers and refiners, endorsed the molasses import ban, commending efforts to uphold trade laws and prioritize American interests.
David Sing