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 the market is about six percent of pretax levels.
The Corn Refiners Association says the dispute has cost American producers $944 million a year.
US Trade Representative Rob Portman says Mexico needs to eliminate the tax “as soon as possible.”
Source: wistv.com
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
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,
WTO panel: Mexico unfairly imposed tariffs
A World Trade Organization panel ruled Tuesday that Mexico had unfairly imposed antidumping tariffs on U.S. rice, rejecting a Mexican appeal against a previous ruling.
Mexico imposed the tariffs on U.S. white long grain rice in June 2002, claiming 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 into line with WTO rules, confirming an earlier WTO ruling from June 2005.
U.S. Trade Representative Rob Portman hailed the decision as
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 Senate rejects beverage tax plan
Mexico's Senate has rejected a proposal to eliminate the 20 percent tax on beverages made with high-fructose corn syrup, a tax that was ruled discriminatory by the World Trade Organization.
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
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
UPDATE 1-Kansas City Southern wins control of Mexico's TFM
Rail operator Kansas City Southern Industries Inc. (KSU.N: Quote, Profile, Research) said on Tuesday it has reached a deal with the government of Mexico to resolve disputes over a tax refund in exchange for control of a Mexican rail network, sending its shares soaring more than 13 percent in afternoon trading.
Kansas City Southern said it and its subsidiaries now own 100 percent of Grupo Transportacion Ferroviaria Mexicana, S.A. (GTFM) and TFM, S.A. (TFM). It said the agreement did not involve cash payments by any parties.
"The effective economic impact is they're exchanging their
Mexico eyes tax cut for reusable beer bottles
Mexico is proposing to tax beer sold in reusable bottles at a lower rate than for disposable cans and bottles, in a bid to twist the arms of brewers Modelo and Femsa to sell more environmentally friendly products.
Under the budget the government sent to Congress late Monday, Mexico plans to tax beer served in reusable bottles, such as Modelo's Corona or Femsa's Carta Blanca, at a rate 72 percent lower than the rate for disposable bottles and cans.
The proposal would have to be passed by the opposition-controlled Congress, which has in the
Bribes: Mexicos hidden tax on progress
Luis Alfonso Sanchez Contreras searched the capitas trendy Condesa neighborhood for two years to find the right spot for a pasta restaurant.
He registered his business with tax authorities. He got permits to remodel his restaurants interior. He asked permission to set up sidewalk tables. He won approval to install a tank of natural gas.
I wanted to do everything by the book, said Sanchez, 44, a former bank manager.
So when local officials solicited an under-the-table payment of $1,350 to speed approval of his operating license, he balked.
More : baltimoresun.com
Mexico plans tax break for tourists
Mexican vacations would be a little bit cheaper next year under a measure approved by the lower house of Congress.
The bill would allow allows tourists a refund of Mexico's 15 percent value-added tax as of July 1, 2006.
Following passage in Congress on Monday, it now goes to the Senate. The federal Tourism Department is promoting the measure, which is similar to a practice used in Europe.
Only tourists arriving by air or sea would be eligible for the refund, which would apply only to products purchased and taken out of Mexico. The total
