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October 27, 2003 His Excellency Luis Ernesto Derbez Foreign Minister Ministry of Foreign Affairs Ricardo Flores Magon 2 Col. Tlatelolco Mexico, D.F. 06954 Dear Minister Derbez: The United States and Mexico have forged important and historic alliances through mutual foreign policy efforts, economic treaties and cross-border initiatives. Of these ties, the valuable trade relationship that we have cultivated under the North American Free Trade Agreement is perhaps the most significant and enduring. Our two-way trade benefits both countries substantially and serves as the foundation from which many other important partnerships are built. As Chairman of the U.S. Senate Foreign Relations Committee and an ardent supporter of trade and the NAFTA, it is imperative that we not only maintain this important economic relationship, but that we further strengthen it by finding solutions to the challenges that we now face. The most critical challenge, and one that we have discussed for some time, is an immediate and satisfactory solution to the sweetener dispute between our two countries. It is unacceptable that this issue has deteriorated to the point wherein U.S. corn farmers and refiners, including those in my home state of Indiana, have lost access to their top export market, Mexico, for nearly two years. The Mexican soda tax is clearly inconsistent with Mexico's WTO obligations and has had the added effect of souring the climate for increased foreign direct investment in Mexico. And to add insult to injury, more than 133 million bushels of corn produced on more than 945 thousand acres in the United States has no market. A fair amount of that corn is produced in Indiana. While I am heartened by the restarting of talks, a meaningful solution must be found in the near future and I understand that as envisioned by NAFTA, two-way trade involves Mexican sugar coming into the United States. As you know, there are Members of the Congress expressing a variety of sentiments including encouraging retaliatory action against Mexican imports. I appreciate your ongoing efforts to resolve this issue so that it does not represent an unfortunate benchmark in the future U.S. - Mexican relations. Sincerely, Richard G. Lugar Chairman Senate Committee on Foreign Relations Cc: Ambassador Robert B. Zoellick 
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