USTR Announces Fiscal Year 2026
WTO Tariff-Rate Quota Allocations for Raw Cane Sugar, Refined and Specialty Sugar,
and Sugar-Containing Products
USTR
Announcement – Sugar TRQs for FY 2026 (Oct 1, 2025 – Sep 30, 2026)
Background
·
TRQs allow limited quantities of imports at low
tariffs; imports above quota face higher tariffs.
·
All imports (within or over quota) remain subject
to tariffs imposed under IEEPA-related executive orders.
1. Raw
Cane Sugar TRQ
·
In-quota quantity (WTO minimum): 1,117,195
MTRV.
·
Allocations: Distributed among supplying
countries based on historical trade volumes.
·
Condition: Quota certificates and origin
verification required (especially for net sugar-importing countries).
2.
Refined Sugar TRQ
·
Total in-quota: 22,000 MTRV
o
20,344 MTRV → General sugars, syrups,
molasses.
o
1,656 MTRV → Specialty sugar.
·
Allocations:
o
Canada: 10,300 MTRV
o
Mexico: 2,954 MTRV
o
First-come, first-served: 7,090 MTRV
o
Specialty sugar: 1,656 MTRV (first-come,
first-served).
·
Note: No additional specialty sugar
added this year (unlike FY 2025, when USDA added 210,000 MTRV).
3.
Sugar-Containing Products TRQ
·
Total in-quota: 64,709 MT
o
Canada: 59,250 MT
o
Other countries (first-come, first-served): 5,459
MT
4.
Effective Date
·
Quota entries permitted from October 1, 2025.
Key
Takeaways:
·
The U.S. maintains WTO minimum commitments on raw
cane sugar and refined sugar TRQs.
·
Canada remains the largest TRQ recipient for
refined sugar and sugar-containing products.
·
No expansion of specialty sugar quota this year, signaling tighter access compared to FY 2025.
The
Office of the U.S. Trade Representative (USTR) on 15 August, 2025 announced the
country-specific and first-come, first-served in-quota allocations of the tariff-rate
quotas (TRQs) on imported raw cane sugar, refined sugar, and sugar-containing products
for Fiscal Year (FY) 2026 (October 1, 2025 through September 30, 2026). The TRQs
are allocated based on historical trade volumes.
TRQs
allow countries to export specified quantities of a product to the United States
at a relatively low tariff, but subject all imports of the product above a pre-determined
threshold to a higher tariff. For clarity, all imports, whether within or over a
U.S. TRQ, are subject to tariffs imposed by relevant executive orders issued pursuant
to the President’s authority under the International Emergency Economic Powers Act
(IEEPA).
On
July 17, 2025, the Administrator of the Foreign Agricultural Service of the U.S.
Department of Agriculture (Administrator) announced the establishment of the in-quota
quantity for raw cane sugar for FY 2026. The in-quota quantity for the TRQ on raw
cane sugar for FY 2026 is 1,117,195 metric tons raw value (MTRV)*, which is the
minimum amount to which the United States is committed under the World Trade Organization
(WTO) Agreement. Based on countries’ historical shipments to the United States,
USTR is allocating the raw cane sugar TRQ of 1,117,195 MTRV to the following countries
in the quantities specified below:
The
allocations of the raw cane sugar WTO TRQ to countries that are net importers of
sugar are conditioned on receipt of the appropriate verifications of origin. Certificates
for quota eligibility must accompany imports from any country for which an allocation
has been provided.
On
July 17, 2025, the Administrator also announced the establishment of the in-quota
quantity of the FY 2026 refined sugar TRQ at 22,000 MTRV. This quantity, for which
the sucrose content, by weight in the dry state, must have a polarimeter reading
of 99.5 degrees or more, includes the minimum amount to which the United States
is committed under the WTO Uruguay Round Agreement, 22,000 MTRV, of which 20,344
MTRV is established for any sugars, syrups and molasses, and 1,656 MTRV is reserved
for specialty sugar. The U.S. Trade Representative is allocating the refined sugar
TRQ as follows: 10,300 MTRV to Canada, 2,954 MTRV to Mexico, and 7,090 MTRV to be
administered on a first-come, first-served basis. Additionally, the U.S. Trade Representative
is allocating the 1,656 MTRV of specialty sugar to be administered on a first-come,
first-served basis.
This
year USDA elected not to add any additional specialty sugar to the refined sugar
TRQ. (Last year, USDA had added 210,000 MTRV of specialty sugar to the FY 2025 refined
sugar TRQ, of which Brazil accounted for nearly 50 percent of imports.)
With
respect to the in-quota quantity of 64,709 metric tons (MT) of the TRQ for imports
of certain sugar-containing products maintained under Additional U.S. Note 8 to
chapter 17 of the HTSUS, USTR is allocating 59,250 MT to Canada. The remainder,
5,459 MT of the in-quota quantity, is available for other countries on a first-come,
first-served basis.
Raw
cane sugar, refined and specialty sugar, and sugar-containing products for FY 2026
TRQs may enter the United States as of October 1, 2025.
* Conversion factor: 1 metric ton = 1.10231125 short tons.