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NEWS STATEMENT FOR IMMEDIATE RELEASE CONTACT: Shannon Shoesmith 304-229-6202 March 5, 2002 CORN REFINERS WELCOME SUSPENSION OF MEXICAN SOFT DRINK TAX, BUT URGE PERMANENT ELIMINATION Today, the Corn Refiners Association, Inc. (CRA) welcomed a decree calling for the suspension of the tax imposed by the Mexican Congress on soft drinks sweetened with high fructose corn syrup (HFCS). The tax, which was imposed as part of a budget package in January 2002 to increase Mexican tax revenues, is completely unjustified, discriminatory and has seriously damaged the U.S. corn refining and corn production industries. The tax does not result in increased revenue, but has effectively closed a very important market to U.S. industry and put into question investment in the Mexican economy. The Government of Mexico announced a decree in the March 5, 2002, issue of the Diario Oficial temporarily removing the tax for seven months. CRA urges the Mexican government to make the temporary removal a permanent elimination of the tax. Any efforts to re-institute the tax should be met by strong action by the U.S. government to remove a similar amount of concessions from Mexican trade. Moreover, the Mexican government should immediately eliminate its import licensing requirements on the import of HFCS into Mexico. These requirements are contrary to Mexico's obligations under the World Trade Organization (WTO) and the North American Free Trade Agreement (NAFTA). "The damage incurred by U.S. companies as a result of this tax is irrecoverable. The Mexican government has taken a first step toward respecting its international trade obligations by suspending the soft drink tax," said CRA Chairman Dr. Michael W. Jorgenson of Roquette America, Inc. "It should now take the next step toward rectifying injustices to the U.S. corn refining industry by complying with the November 2001 WTO ruling and lift antidumping duties placed on U.S.-made HFCS," Jorgenson advised. CRA noted that the sweetener dispute involving Mexico's access to the U.S. sugar market, which has resulted in the various attacks on HFCS including the antidumping duties and soft drink tax, should be the subject of immediate good-faith negotiations between the two governments. For more information on the corn refining industry, visit the Corn Capsules newsletter page. 
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