Obama's Trans-Pacific Trade Pact Not Looking So Sweet

The Obama administration has been working to secure a trade pact between North America and several Pacific nations that would carve out global trading regulations for two-fifths of the world's economy. Obama has said that the deal is necessary to solidify the US' position as a dominant world power, but critics worry that the deal will have a negative impact on the US economy. This week, sugar industry leaders got together to discuss the trade deal, but it appears it will need a bit of sweetening before they can agree.

The sugar industry in the US is heavily supported by government programs designed to suppress imports and bolster domestic production.

142,000 jobs and generates $20 billion worth of economic activity each year. For that reason, US lawmakers have used a series of loans and import restrictions to keep it humming along. At the moment, the US imports just 30 percent of the sugar it uses, but the trade deal could change that.

The trade pact may increase the amount of sugar imported to the US by allowing countries like Australia, which have historically been shut out of the US sugar market, to begin exporting sugar to the US. Many in the US worry that increasing imports will expose the industry to price pressure which will eventually stifle growth.

However, supporters of the trade deal say that giving Australia access to the US sugar market could be a good way to get the nation to accept intellectual property rules that the US wants to implement. With the trade deal appearing to be nearing its final stages, US trade representative Mike Froman will be tasked with striking a delicate balance regarding the sugar negotiations to ensure the deal doesn't fall apart.