NEW YORK, Oct 31 (Reuters) - The United States Government Accountability Office (GAO), a congressional agency overlooking the use of U.S. taxpayer money, said on Tuesday it recommended actions to the government to improve the way the country imports sugar.
GAO said in a report where it analyzed the U.S. sugar program that the U.S. Department of Agriculture (USDA) and the U.S. Trade Representative (USTR) need to evaluate the way sugar import quotas at low tariffs are allocated to countries.
The agency said the current model, which is based on market data collected more than 40 years ago, lacks efficiency and leads to "fewer sugar imports than planned and delays in obtaining sugar."
As a result, sugar supplies remain tight in the local market and prices for sugar in the U.S. continue to be among the highest in the world, increasing costs to consumers and companies.
"Without considering new methods, USDA and USTR may be missing opportunities to make sugar allocations more effective and efficient," GAO said.
The U.S. imports around a quarter of its annual sugar use.
A large share of imports comes from the TRQ (Tariff-Rate Quota), a lower tariff volume agreed with the World Trade Organization (WTO).
The current system, however, gives allocations to countries that have repeatedly been unable to sell the product. Those unfilled allocations have to be re-allocated, leading to delays on imports.
The sugar supply situation in the U.S. could deteriorate this year after a drought sharply reduced production in Louisiana.
GAO said that USDA and USTR concurred with their recommendations.
(Reporting by Marcelo Teixeira; Editing by Stephen Coates)
