U.S. sugar prices have traditionally been far above and largely independent of world prices due to import restrictions and provisions of the U.S. sugar program (price supports and domestic marketin allotments). In particular, a tariff-rate quota (TRQ) insulate the domestic market from global price spikes by putting a ceiling on the quantity of sugar that the U.S. is required to import, so domestic prices are set primarily by internal supply and demand conditions.
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