Mexico may appeal WTO decision

- Last updated on GMT

Related tags: International trade, Mexico

Mexico will shortly decide whether to appeal a World Trade
Organization ruling that found its anti-dumping duties on imports
of U.S. corn-based sweetener...

Mexico will shortly decide whether to appeal a World Trade Organization ruling that found its anti-dumping duties on imports of U.S. corn-based sweetener violate international trade law, a Mexican trade official said on June 25. Mexico says a rise in high fructose corn sweetener (HFCS) imports from the United States since 1996 harmed its local sugar producers, depressing sales and raising industry unemployment. High fructose corn syrup has displaced sugar as the key sweetener used in Mexico's enormous soft-drink industry, cutting the sugar industry stake in what growers say is a fundamental market. To offset the imports, Mexico slapped prohibitive tariffs on U.S. high fructose corn syrup (HFCS) flowing across the border. However, on June 22, a WTO panel ruled that Mexico was violating global trade rules with the anti-dumping tariffs on HFCS imports from the United States and said the Latin American nation should drop them. The U.S. government requested that a WTO panel review Mexico's renewed argument that the HFCS shipments were a threat to its sugar industry. Last January, this same WTO panel found that Mexico's actions were inconsistent with WTO anti-dumping laws. However, Mexico maintained its import duties despite the ruling. Mexican duties on the U.S. imports range from $55.37 to $175.50 per metric ton and are paid by U.S. companies, including Archer Daniels Midland Co.​, the largest U.S. grain processor, and agricultural giant Cargill Inc. Source: Reuters

Related topics: Policy

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