Hume Seeks HFCS Relief from Mexicans

January 23, 2002

National Corn Growers Association (NCGA) President Tim Hume met with Mexico's Secretary of Economy Luis Derbez in Washington late last week to discuss their mutual concerns about Mexco's taxation of soft drinks containing high-fructose corn syrup (HFCS). The tax on high-fructose corn syrup, NCGA says, could place an unfair disadvantage on soft drinks produced from corn sweetener and U.S. corn sales could face a $66 million reduction.

Hume, a corn grower from Walsh, CO, said he believed Derbez was "reasonable" during the meeting, but there was no resolution to the trade issue over the soft drink tax. "It was a good meeting," Hume said. "We heard what we needed to hear, and I feel Mr. Derbez was being reasonable. Right now, both parties are waiting for more information. We were pleased that we had the opportunity to voice our concerns over this tax to Minister Derbez and to speak first-hand about the harm to corn growers across the country."

The value of the HFCS market in Mexico is about $240 million. However, that includes HFCS refined using U.S. corn in both the United States and Mexico. Several corn-processing companies have invested more than $800 million in refineries in Mexico since the North American Free Trade Agreement was passed. The HFCS market in Mexico includes a demand for about 32 million bushels of corn.

If the United States' ability to supply the soft drink market in a cost-effective manner is diminished by this tax, corn growers across the country will be hurt, said Hume. He added that Mexico is currently the United States' number two market for bulk corn exports and NCGA wants to retain that market for both bulk corn and HFCS.