May 18

The Corn Refiners Association said it supports a decision by the U.S. trade representative to investigate further efforts by Mexico to limit consumption of high fructose corn syrup (HFCS) by Mexican soft drink bottlers. CRA says Mexico must stop efforts to restrict HFCS consumption.

Chuck Conner, CRA president, says Mexico "has a long history of attempting to force its soft drink bottlers to restrict HFCS purchases." The USTR decision "reminds the government of Mexico that U.S. trade law is designed to protect U.S. exporters against collusive trade arrangements by foreign governments and entities."

The CRA initiated an investigation in May 1998 under section 302 of the Trade Act of 1974 alleging that Mexico illegally participated in efforts to prevent soft drink bottlers from using HFCS. Two Mexican cabinet members "openly acknowledged their role in the production of this agreement," says Conner.

"Constructive talks" between the United States and Mexico over bilateral sweetener trade caused CRA not to seek retaliation then. "Nevertheless this should be a strong message to Mexico to cease and desist its efforts to restrict consumption of HFCS irregardless of the status of bilateral negotiations," he adds.