NAFTA Tribunal Awards Damages in HFCS Dispute

A North American Free Trade Agreement (NAFTA) tribunal has reportedly awarded $58 million in damages to Corn Products International’s Mexican affiliate after finding that Mexico imposed discriminatory taxes on beverages sweetened with high-fructose corn syrup (HFCS). The tribunal determined in January 2008 that Mexico had breached its NAFTA obligations to favor its domestic sugar industry by requiring a 20 percent tax on HFCS-sweetened beverages. According to a news source, the tax was also imposed in retaliation for U.S. curbs on surplus Mexican sugar imports in the 1990s, an anti-dumping practice declared illegal by the World Trade Organization. See FoodNavigator-USA.com, August 29, 2009.