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June 4, 2003 FOR IMMEDIATE RELEASE Contact: Curt Mercadante CORN REFINERS LAUD GRASSLEY AND LUGAR EFFORTS TO ASSAIL INVESTMENT OPPORTUNITIES IN MEXICO UNTIL SWEETENER DISPUTE IS RESOLVED WASHINGTON, DC – The Corn Refiners Association, Inc. (CRA) today applauded Senate Finance Chairman Charles Grassley (R-IA) and Senate Foreign Relations Chairman Richard Lugar (R-IN) for urging a quick and fair resolution to the U.S.-Mexico trade dispute that has shut out U.S. exports of high fructose corn syrup (HFCS) to Mexico for eighteen months. The Senators agreed that until a solution is achieved for sweeteners, investors should think twice about investing in Mexico. In advance of the Partnership for Prosperity Entrepreneurial Workshop, scheduled for June 9-10 in San Francisco, both Chairmen Grassley and Lugar pressed key U.S. administration officials who are participating in the workshop to make workshop attendees aware that “the experience of U.S. investors in Mexico is not always positive.” The senators urged the U.S. officials to highlight the pitfalls of investing in Mexico. The senators sent their letters to Secretary of Commerce Donald Evans. Senator Grassley’s letter also went to Department of Commerce Under Secretary for International Trade Grant Aldonas and Under Secretary of State for Economic, Business and Agricultural Affairs Alan Larson. “Mexico’s treatment of a major foreign investor, the HFCS industry, calls into question whether Mexican government officials are truly committed to attracting, and keeping, foreign investment in their country,” wrote Chairman Grassley. “I hope that you will make it clear to participants in the Partnership for Prosperity Entrepreneurial Workshop, as well as to Mexican officials who attend, that the experience of U.S. investors in Mexico is not always positive.” Mexico’s actions have “harmed both HFCS manufacturers and corn producers in the United States, particularly Indiana, where Hoosiers produced 631.6 million bushels of corn in 2002, a decrease of 29% from 2001 levels,” wrote Lugar. “I hope that you will use the opportunity (of the workshop) to stress the importance of resolving this issue to Mexican officials attending the conference, and I urge you to work towards a quick resolution to this ongoing dispute.” “We are grateful to Chairmen Grassley and Lugar for their efforts to address the harmful Mexican government actions to shut out U.S. exports of high fructose corn syrup from their market. Mexico’s discriminatory actions are undermining the NAFTA and creating extreme uncertainty for investments in Mexico,” said Audrae Erickson, President of CRA. “The leaders of America’s Senate Finance and Senate Foreign Relations Committees agree that Mexico’s actions have threatened U.S. investment in their country and call into question the viability of the Partnership for Prosperity workshop.” In January 2002, Mexico placed a discriminatory 20% tax on soft drinks containing HFCS that has completely shut out U.S. exports of HFCS to Mexico for 18 months. No other major U.S. agricultural or non-agricultural exporting industry has had its top export market closed for that period of time. Sweetener consuming industries have been harmed due to a loss of price competition in the marketplace. As a result of Mexico’s protectionist actions, the corn refining industry has idled capacity, lost jobs, and experienced significant losses in profitability. The industry is experiencing 25% in lost exports as a percentage of existing U.S. HFCS production, and more than $1.1 billion in plant replacement value directly associated with potential exports to Mexico. For every 2 million metric tons of HFCS access into Mexico, the U.S. will lose: $620 million annual HFCS export sales; more than $300 million annual corn sales; 133 million bushels of bulk corn production; 945.7 thousands acres of corn production; and additional losses to seed, fertilizer and farm machinery industries and related rural investment. -30- Editor’s Note: A copy of Senator Grassley’s letter can be found on the Web at http://www.corn.org/web/0603GrassleyMexicoLetter.html and a copy of Senator Lugar’s letter can be found on the Web at http://www.corn.org/web/0603LugarMexicoLetter.html. For more information on the corn refining industry, visit the Corn Capsules newsletter page. 
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