Corn Refiners Association


NEWS STATEMENT


FOR IMMEDIATE RELEASE
CONTACT: Hayden Milberg, NCGA 202-628-7001
or Audrae Erickson, CRA 202-331-1634

March 14, 2003

REPRESENTATIVES URGE MEXICAN AMBASSADOR TO
ACT ON SWEETENER DISPUTE SETTLEMENT


The National Corn Growers Association (NCGA) and the Corn Refiners Association, Inc. (CRA) applaud the efforts of House leaders seeking action from Mexican Ambassador to the United States Juan Jose Bremer toward a negotiated solution to the ongoing sweetener dispute between Mexico and the United States. Expressing frustration with the prolonged negotiations, 31 Representatives sent a letter today to the Ambassador urging immediate action to quickly strike a meaningful deal and successfully conclude the talks.

"The corn industry has been held hostage for over a year in search of a resolution to this dispute. Corn growers stand ready to reach an agreement and resume a normal trading relationship with Mexico. This is the right thing to do and we should not delay any longer," said Fred Yoder, President, NCGA.

"The potential 1.5 million metric ton market for high fructose corn syrup (HFCS) in Mexico was an excellent incentive for corn refiners to invest hundreds of millions of dollars in the promise of NAFTA and its market opening trade-expanding prospects. Unfortunately, this market remains elusive and as a result of Mexico's protectionist actions, our industry has idled capacity, lost jobs, and experienced significant losses in profitability," said CRA President Audrae Erickson. "The longer it takes to reach a settlement, the more the corn industry suffers. We appreciate the Congressional support to bring the negotiations to an end and re-open this important market."

U.S. exports of HFCS to Mexico have been shut down for 15 months. No other major U.S. agricultural or non-agricultural exporting industry has had its top export market closed for this period of time. Sweetener consuming industries have been harmed due to a loss of price competition in the marketplace. For every 300,000 metric tons of HFCS access into Mexico, U.S. corn producers have lost market opportunities for more than 20 million bushels of corn from 142,000 acres annually.

House Budget Committee Chairman Jim Nussle (R-Iowa) and Representative Calvin Dooley (D-Calif.), along with a strong bipartisan group of Representatives with corn industry interests, led the letter writing campaign urging continued efforts toward a good resolution.

The letter states, "It is clear that both U.S. and Mexican farmers and processors in this sector have a lot to gain from a negotiated solution. We believe it is possible, and necessary, to make every effort to finalize the outstanding issues that remain and announce a good deal that will benefit stakeholders on both sides of the border."

The Members acknowledged the potential negative costs if Mexico does not work diligently with the United States to resolve the dispute. "The consequences of not reaching a deal are great and will undoubtedly jeopardize a very large and growing agricultural trade relationship under the NAFTA," the letter warns.

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EDITORS NOTE: The letter in its entirety is available online at http://www.corn.org/web/0303houseltr.pdf.




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