Final answer:
Due to import quotas, U.S. candy companies pay substantially more for sugar, contributing to approximately $1 billion per year in elevated consumer food prices. These policies have led to job losses in sugar-using industries and negatively impact global sugar producers.
Step-by-step explanation:
U.S. candy companies are paying significantly more for sugar due to the import quota. This system has led to U.S. consumers paying approximately $1 billion per year in higher food prices.
The impact of the sugar subsidies to domestic producers combined with the quotas on imports has not only affected the prices of sugar but also the wider economy—resulting in a reduction of jobs in sugar-using industries and putting sugar producers in lower-income countries out of business.
The import quotas artificially restrict the supply of sugar, keeping domestic prices high. This results in U.S. companies incurring higher costs for sugar, which has led to a shift in production abroad, where sugar can be procured at a lower cost. As a result, the U.S. sugar policy has affected both local employment in sugar-related manufacturing and the global market for sugar.