Final answer:
The U.S. import quota on sugar increases the domestic price, costing consumers roughly $1 billion more per year and causing significant job losses in sugar-using industries. Sugar producers in low-income countries are also harmed, as they are unable to compete in the U.S. market.
Step-by-step explanation:
Impact of Sugar Import Quotas
The import quota on sugar results in higher prices for sugar in the United States.
Due to the quotas, U.S. candy and cookie manufacturers are mandated by law to use 85% domestic sugar in their products, which drives the domestic price higher, especially since the European Union has no such quotas and boasts prices that are 40% lower.
The majority view, which in this case includes the many more consumers of sugar than producers, does not prevail because of the powerful U.S. sugar lobby that pushes for these protectionist policies.
Economic Implications of the Sugar Quotas
U.S. consumers pay an estimated $1 billion per year in higher food prices due to the elevated costs of sugar.
These sugar subsidies and quotas not only hurt U.S. consumers but also have global economic implications, as sugar producers in low-income countries cannot compete in the U.S. market, harming their economies.
Furthermore, the domestic impact includes the loss of jobs in sugar-using industries, which has been significantly greater than the employment in sugar production itself.
Percentage Increase and Quantity Affected
The specific percentage increase in sugar prices for U.S. candy companies as a direct result of the import quota is not provided in the referenced information.
Similarly, the exact quantity of sugar affected by the import quota is not stated.
However, the broader economic data shared indicates significant cost burdens on industries reliant on sugar and job loss due to these policies.