Even with a duty that raises the cost to over 19 cents per pound when sugar is brought into America, businessmen know that 19 cents is cheaper than 22 cents. And businessmen know that they need to pack up and leave the United States if they want to get that cheaper sugar. Also, the incentive remains to move operations overseas if the company is pursuing an aggressive export strategy. I think the best example of the present sugar program driving jobs out of America is the story of Bob's Candies. Bob's Candies was the largest producer of candy canes in America.
Candy canes are a very cyclical industry and are made to be a low cost candy.
However, the U.S. sugar program throws large roadblocks in the way of domestic candy makers. Accordingly, Bob's Candies moved to Jamaica where sugar is much cheaper. This savings would enable the company to keep jobs in America and lower retail prices. Unfortunately, it just makes good business sense to go overseas to get cheaper sugar to make candy. Also, the Committee should note that the cost of our sugar program was a main reason why Coke and other soda companies do not use sugar in soft drinks.