WTO panel sides against Mexico tax on U.S. corn sweetener
Mexico violated global trade rules in a soft-drink dispute with the United States, a World Trade Organization panel ruled Friday.
At issue is a 20-percent tax that Mexico imposed on beverages made with imported sweeteners such as high-fructose corn syrup and sugar made from beets. Drinks made with Mexican cane sugar are exempt from the tax.
Mexico said that regardless of the WTO panel decision, unless it can reach an agreement with the United States, it will continue to adopt the measures it considers necessary to protect the interests of its sugar sector.
Mexico was a top market for high-fructose corn syrup from the U.S. before the tax was imposed in 2002. The tax made it too expensive to use the corn sweetener in soft drinks, and today, the U.S. share of the market is about 6 percent of pretax levels, according to the U.S. trade representative’s office.
“The WTO panel could not have been clearer: Mexico’s beverage tax is discriminatory and contrary to WTO rules,” U.S. Trade Representative Rob Portman said. “Mexico needs to eliminate this tax as soon as possible.”
The dispute over sugar and corn sweetener has cost U.S. corn refiners $944 million annually, according to the Washington-based Corn Refiners Association.
“Our industry has long supported a solution that opens the sweetener market between the United States and Mexico and restores that market for U.S. corn sweeteners,” said association president Audrae Erickson.
Mexico imposed the tax after the WTO ruled against Mexican duties on imported corn syrup.
Officials of Mexico’s Economy Department have publicly discussed imposing a 210 percent duty on high-fructose corn syrup in anticipation of the WTO’s action. In a statement Friday, officials were more reserved, saying only that they were weighing their options.
“Mexico will always give preference to a negotiated solution,” the statement said.
Source: mercurynews.com
WTO panel sides against Mexico tax on US corn sweetener
A World Trade Organization panel has found that Mexico violated global trade rules in a soft-drink dispute with the US.
The issue is a 20-percent tax that Mexico slapped on beverages made with imported sweeteners such as high-fructose corn syrup and sugar made from beets. Drinks made with Mexican cane sugar are exempt.
Before the tax was imposed in 2002, Mexico was a top market for high-fructose corn syrup from the US. However, the tax made it too expensive to use the corn sweetener in soft drinks, and now the US share of
Mexico mulls appeal of WTO corn syrup tax ruling
Mexico is mulling whether to appeal a World Trade Organization ruling in favor of the United States in a dispute over taxes on drinks made with high-fructose corn syrup, while seeking other ways to slow imports of the sweetener.
Mexico has in the past said it would contest the WTO ruling, but has yet to launch an appeal.
"One possibility is that we will not appeal the decision, depending on whether we have an alternative that could be as effective" in restricting imports, said Hugo Perez Cano, of Mexico's trade negotiating team.
In June,
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The Senate voted 47-31 late Thursday against the bill, which had already passed the lower house of Congress.
Congress imposed the levy in 2002 at the height of a dispute between Mexico and the United States over sweeteners that pitted Mexican sugar producers against U.S. corn refiners.
More: businessweek.com
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Mexico will eliminate soft-drink tax
Mexico will eliminate a 20 percent soft-drink tax following a World Trade Organization ruling that it violated global trade rules, officials said Wednesday.
On Monday, a WTO panel rejected an appeal by Mexico and supported U.S. claims that Mexico was in breach of international law in imposing a 20 percent tax on drinks that are sweetened with anything other than cane sugar grown in Mexico.
The government plans to ask Congress to lift the tax, which was imposed in 2002 by legislators to protect the Mexican sugar industry.
"We are working to resolve the tax
Mexico Loses Appeal on Its Rice Tariffs
A World Trade Organization appeals panel ruled that Mexico had unfairly imposed anti-dumping tariffs on U.S. rice, rejecting Mexico's argument against a previous ruling.
Mexico imposed the tariffs on U.S. white long-grain rice in 2002, claiming that it was being sold in Mexico at unfairly low prices, damaging Mexican producers.
U.S. officials raised the issue before the WTO a year later. In its ruling, the appellate body said Mexico must bring its measures in line with WTO rules, confirming an earlier ruling.
More: latimes.com