Dear Ambassador Zoellick:
I am writing with regard to a letter sent to you by the Mexican National Industry Chamberfor Sugar and Alcohol (CNIAA) on August 6, 2004. In its letter, the CNIAA asked you to terminatethe dispute settlement proceeding initiated by the United States earlier this year at the World TradeOrganization (WTO) over Mexico’s 20 percent tax on soft drinks and other beverages containingsweeteners other than cane sugar.
This tax was imposed with the express purpose of blocking imports into Mexico of U.S.produced high fructose corn syrup (HFCS) and U.S. corn destined for processing into HFCS atMexican plants. I am convinced that the imposition and maintenance of this HFCS tax directlyviolates Mexico’s WTO commitments.
Moreover, this tax is harming Iowa corn farmers, Iowa HFCS producers, and corn farmersand HFCS producers in other states. Mexico was formerly the largest export market for U.S.produced HFCS. As a result of the 20 percent tax, U.S. exports of this corn product to Mexico arenow at almost zero levels.
Accordingly, I strongly urge you to continue dispute settlement proceedings at the WTO overMexico’s HFCS tax and, if possible, to expedite these proceedings.
Sincerely,
Charles E. Grassley Chairman
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Source: Ranking Member’s News
