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NEWS STATEMENT FOR IMMEDIATE RELEASE CONTACT: Shannon Shoesmith January 3, 2002 CORN REFINERS CONDEMN MEXICAN SOFT DRINK TAXES The Corn Refiners Association, Inc. (CRA) today condemned legislation passed earlier this week by the Mexican Congress that would place a tax of up to 20 percent on soft drinks made with high fructose corn syrup (HFCS). The Association said the action would damage Mexican consumers, U.S. corn farmers and processors and U.S. investments in Mexico. The Association called on the Fox Administration to reject the tax proposal in the interest of all parties concerned. "The new taxes are clearly aimed at stopping the imports of HFCS and U.S. corn and disadvantaging American companies who have made significant investments in Mexico to produce alternate nutritive sweeteners" said CRA Chairman Dr. Michael W. Jorgenson of Roquette America, Inc. "By submitting to the single interests of the much politicized domestic Mexican sugar industry, the Mexican Congress would deprive its population of alternative sources of nutrition and the new jobs that are created with the production of high fructose corn syrup in Mexico," Jorgenson added. "Further, these new taxes will insure that soft drinks, one of the Mexican consumer's favorite products, will not be as accessible to all economic levels of the general population." Jorgenson noted that one of the major achievements of the North American Free Trade Agreement was the ability of Mexico to attract new business investment. "This action sends a chilling signal to the international business investment community about the respect for international obligations and investment rules in the Mexican economy," he said. The new tax scheme also appears to violate international obligations under the North American Free Trade Agreement and the World Trade Organization. For more information on the corn refining industry, visit the Corn Capsules newsletter page. 
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