US requests WTO to establish dispute settlement panel regarding

On June 22, the United States requested that the World Trade Organization (WTO) establish a dispute settlement panel regarding Mexico's 20 percent tax on beverages and syrups made with sweeteners other than sugar, according to a press release issued by the Office of the U.S. Trade Representative (USTR).

The United States believes that Mexico's beverage tax violates Mexico's WTO obligations because it discriminates against U.S. products such as high-fructose corn syrup (HFCS), a corn-based sweetener that competes with sugar.

"Mexico's discriminatory beverage tax is the latest in a series of measures imposed to protect Mexican sugar producers from competition," U.S. Trade Representative Robert Zoellick said. "Our sweetener industries have tried hard to resolve this matter. However, it is now time to go to the WTO to ensure the rights of American corn refiners are respected."

Only beverages and syrups that use HFCS and other non-cane-sugar sweeteners are subject to Mexico's tax measures, the USTR office explained, adding that the taxes have sharply restricted U.S. exports of HFCS.

C 2004 All rights reserved. EMEconomy
Provided by ProQuest Information and Learning Company. All rights Reserved.