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NEWS STATEMENT FOR IMMEDIATE RELEASE CONTACT: Shannon Shoesmith 202-331-1634 or 304-229-6202 April 15, 2002 NAFTA PANEL RULES IN FAVOR OF U.S. CORN REFINERS CALL ON MEXICO TO END ANTIDUMPING DUTIES The Corn Refiners Association, Inc. (CRA) welcomed a final NAFTA panel ruling that Mexican antidumping duties on U.S.-produced high fructose corn syrup (HFCS) are illegal. The NAFTA panel gave the Government of Mexico 30 days to terminate the antidumping order, which has been in effect since January of 1998. The final NAFTA ruling, coupled with similar rulings by the World Trade Organization last year, conclusively prove the Government of Mexico's actions against HFCS violate international agreements it has agreed to respect. CRA calls on the Mexican government to abide by international trade law and immediately terminate the antidumping duty order and refund all duties previously collected. "Today's NAFTA panel ruling marks a complete victory for U.S. corn refiners under the rules for resolving international trade disputes. The U.S. government should insist on immediate and full compliance by Mexico," said CRA Chairman Dr. Michael W. Jorgenson of Roquette America, Inc. "It is time for the Mexican sugar industry to stop hiding under the blanket of government sanctioned protectionism," he added. The damage to the U.S. corn refining industry resulting from the illegal duties is substantial, and U.S. corn producers have suffered as well. Over the past five years, U.S. corn growers have lost hundreds of millions of dollars in corn sales as a result of the reduced market for HFCS. Additional protectionist measures by the Government of Mexico, specifically a tax that was imposed on soft drinks sweetened with HFCS in January, have reduced sales even further. Although the tax has been suspended until September, the suspension has done little to restore the HFCS market in Mexico. Today's NAFTA panel decision is the fifth ruling by international trade tribunals against Mexico's imposition of antidumping duties on U.S. corn sweeteners in the last four years. The same NAFTA panel ruled against Mexico last August and gave the Mexican government 90 days to comply. Mexico responded with stall tactics by submitting a sham redetermination of injury to the NAFTA panel. Today's NAFTA panel ruling proves once again that Mexico has violated its obligations under international treaties that were designed to give Mexico access to greater international trade and investment opportunities. A WTO panel in January 2000 ruled that Mexico's antidumping duties on HFCS were illegal. Mexico sought to comply with the ruling by issuing a redetermination on the issue of threat of injury to its domestic sugar producers. The WTO panel in June 2001 ruled a second time in favor of the U.S. position, and the WTO Appellate Body affirmed the U.S. position in October 2001. "Mexico thought that we would throw our hands up in frustration, but we did not," said Jorgenson. "We will continue to fight for the right to compete in the Mexican market. And, we will respect the right of Mexico to compete in the U.S. market as well. If the NAFTA is to work, Mexico must comply now with the Panel's ruling, and Mexico must not circumvent the ruling by resorting to other means of market protection, such as licensing requirements, taxes or political pressures on HFCS consumers." For more information on the corn refining industry, visit the Corn Capsules newsletter page. 
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