Corn Growers Upset Over HFCS to Mexico

August 10, 2000

The National Corn Growers Association (NCGA) has told U.S. Trade Representative Charlene Barshefsky that corn growers have "serious concerns" about trade with Mexico, especially trade in high fructose corn syrup (HFCS). "Our organization helped secure passage of the North American Free Trade Agreement (NAFTA) because corn farmers saw an opportunity to sell highly competitive U.S. corn and corn products throughout Mexico," said Lynn Jensen, NCGA president.

Marketing opportunities for HFCS to the Mexican soft drink market represented a potential demand for more than 150 million bushels of corn, he told Barshefsky in a letter. But U.S. trade in HFCS "has been hampered by a dispute with Mexico that has idled existing corn refining capacity and delayed construction of new facilities. U.S. exports of high fructose corn syrup to Mexico - instead of growing - have been reduced by 35% since 1997," he added.

"This has occurred at a time when HFCS prices are significantly below sugar prices in both the United States and Mexico," Jensen continued. "While attempts have been made to settle the dispute over sugar trade, the Oct. 1 deadline is fast approaching without any assurance that the matter will be resolved. Indeed, the current trend is not toward settlement but toward more legal challenges and further sanctions against U.S. corn sweeteners."

The United States is discussing access levels for Mexican sugar that likelly will result in further limits on HFCS sales to Mexico and could even result in reduced corn exports. "It is intolerable that U.S. corn farmers should continue to pay for the protections sought by the sugar industries on both sides of the border," said Jensen.

With a large incoming corn crop, U.S. corn farmers "can wait no longer for our country to settle this dispute. We encourage you to call a summit of the two governments and resolve this issue immediately before U.S. corn farmers are hurt even more by this trade dispute," he added.