The End of the American Oreo and 600 Jobs – Another Loss to Mexico Due to Taxes

The End of the American Oreo and 600 Jobs – Another Loss to Mexico Due to Taxes

Damn, there goes one of my favorites. Oreo is moving its manufacturing facilities and 600 jobs to Mexico. Why, you ask? Well because of trade barriers, America pays twice what the rest of the world does for sugar. That’s a tariff – a tariff is a tax on imports or exports (an international trade tariff). Trump has sworn off Oreos now, even though he loves them. He blasted Nabisco for moving their plant from Chicago to Mexico as so many others have. The company behind the iconic treats like Oreos and Chips Ahoy! recently told the Chicago Tribune that after layoffs and an opt-out of a factory upgrade deal, it would be constructing its new plant in Mexico. I guess it comes down to not wanting to pay double the price for the sugar and being competitive in the world market. Taxation is strangling businesses.


From Liberty Alliance:

The beloved Oreo is going to be manufactured in Mexico, and you can thank sugar tariffs designed to protect one industry over other industries.

“The manufacturer of Oreo cookies recently announced plans to move production of Oreos from Chicago to Mexico, resulting in a loss of 600 U.S. jobs.

“This should be a wake-up call to defenders of the U.S. sugar program and other job-destroying trade barriers.

“The leading ingredient in Oreos is sugar, and U.S. trade barriers currently require Americans to pay twice the average world prices for sugar.

“Sugar-using industries now have a big incentive to relocate from the United States to countries where access to their primary ingredient is not restricted.”

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Trump also says that “Mexico is the new China.” Businesses who move across the border will be faced with the same tariffs and restrictions that China imposes on companies like Boeing. So in the end, it buys the company little to nothing, but they do walk away from the US and into a crime-ridden hellhole like Mexico. But then again, it probably resembles Chicago a great deal these days. Just sayin’. Trump says our leaders setting these rules and taxes in motion are stupid… boy, truer words were never spoken. Nabisco will invest $170 million in the installation of four “state-of-the art” production lines at the new Mexican plant to replace nine “older, inefficient lines” at the Chicago facility. According to analysts, the move by the multi-national company was spurred by soaring production costs caused by the prohibitively high price of imported sugar. According to a 2006 report compiled by the U.S. International Trade Administration, Chicago “has lost nearly one-third of its SCP [sustainable consumption production] manufacturing jobs over the last 13 years. These losses are attributed, in part, to high U.S. sugar prices.” The decade-long issue of cheap sugar imports from Mexico came to a head last December when the U.S. Department of Commerce (DOC) inked agreements to suspend the antidumping and countervailing duty investigations of sugar imports from Mexico “that would prevent an oversupply of sugar” to the U.S. market. “With the stroke of a pen, these agreements dismantle the unrestricted free trade of sugar between the United States and Mexico since 2008 and undermine the core principles of the North American Free Trade Agreement,” the Sweetener Users Association (SUA) said in a statement reacting to the move by the DOC. You see, this is also wealth redistribution. It is a concerted plan between the US and Mexico to relocate manufacturing and businesses to further blur the borders between the two nations and to weaken America and strengthen Mexico. This is no way to make America great again.

Terresa Monroe-Hamilton

Terresa Monroe-Hamilton is an editor and writer for Right Wing News. She owns and blogs at She is a Constitutional Conservative and NoisyRoom focuses on political and national issues of interest to the American public. Terresa is the editor at Trevor Loudon's site, New Zeal - She also does research at You can email Terresa here. NoisyRoom can be found on Facebook and on Twitter.

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