"Carousel" In, Sugar Out of Final Africa Bill

May 4, 2000

House and Senate negotiators reached final agreement on a bill to extend new trade preferences to African and Caribbean nations, after a weeks-long delay involving arguments over textile trade. Formal approval of the bill by the full House could come as early as today.

In the final hours, negotiators kept a Senate provision calling for the government to change periodically the list of imported products that are subject to sanctions in trade disputes such as the U.S.-European beef hormone case. The so-called "carousel" retaliation provision was supported by most farm groups.

But sugar growers lost in their effort to close what they call a loophole that allows a Michigan company to import a product called "stuffed molasses" at a low duty. Sugar growers and cane refiners say the product is formulated to evade import quotas on refined sugar and similar products. The company, owned by the British trading firm ED&F Man, originally had approval from the Customs Service to import the product, then saw that approval reversed in a decision it called political. The company then sued and, so far, has prevailed in court.