Mexican lawmakers have reportedly approved a 1 peso-per-liter tax (US 23 cents) on sugar-sweetened beverages (SSBs) and an 8 percent tax on junk food. The controversial legislation, which aims to curb rising obesity levels, was approved in a 73-50 vote and is expected to take effect January 1, 2014. According to news sources, Mexico, whose obesity and diabetes rates surpass those of the United States, will be the first major market to tax SSBs, following a handful of other Latin American and European countries. Mexicans reportedly consume more than 700 8-ounce servings of SSBs annually. More details about the legislation appear in Issue 501 of this Update.
Tag Archives Mexico
Mexico’s lower house has reportedly approved a new fiscal package that would, among other things, tax high-calorie foods—such as chocolate, sweets, pudding, potato chips, and ice cream. The new tax, which complements a planned charge on sugar-sweetened beverages (SSBs) discussed in Issue 497 of this Update, is part of a broader package proposed by President Enrique Peña and is expected to pass in the Senate by the end of the October. According to news sources, the proposed legislation would tax high-calorie foods—defined as those providing 275 calories or more per 100 grams—at 5 percent of the ticketed price and chewing gum at 16 percent. The price of soft drinks would increase by about 8 cents per liter. The move is supported by health experts who note that Mexico has one of the world’s highest rates of obesity, reportedly surpassing the United States, and who applauded higher prices for chips, candy and…
The World Trade Organization (WTO) has reportedly established a compliance panel at the request of Canada and Mexico in an ongoing dispute over the U.S. country-of-origin (COOL) meat labeling rules. Canada’s International Trade Minister Ed Fast and Agriculture Minister Gerry Ritz applauded the WTO action, saying that the United States must “respect its international trade obligations and put an end to mandatory Country of Origin labeling.” Canada argues that recent changes to the COOL implementing regulations did not bring them into conformity with WTO obligations. Because the compliance panel consists of the original members who found that the U.S. law was unfair to foreign meat producers, the Canadian officials suggest that the process will be accelerated. If the challenge succeeds, “which may include an appeal to the WTO Appellate Body, Canada could seek authorization from the WTO to impose retaliatory tariffs on U.S. imports.” Meanwhile, meat and livestock organizations that…
Lawmakers in Mexico have reportedly proposed a tax on all sugar-sweetened beverages in an effort to curb the nation’s obesity and Type 2 diabetes epidemics. According to a news source, the proposed legislation, intended for flavored beverages, concentrates, powders, syrups, and essences or flavor extracts, would apply a tax of one peso (US eight cents) for each liter of sugar-sweetened beverage. Soft drinks sold at movie theaters would evidently be exempt. Consumer advocacy groups support a tax on sugary beverages, but argue that it should be higher to have a greater impact on public health. “It’s good that there would be a tax. We have to acknowledge that. But to have a significant impact on consumption of sugary drinks, assessments show that it should be a 20 percent tax,” said Alejandro Calvillo, head of the consumer watchdog group Consumer Power A.C. Calvillo, who has linked the consumption of sugary drinks…
A World Trade Organization (WTO) arbitrator has determined that the United States must conform its country-of-origin-labeling (COOL) rules in accordance with an earlier ruling by May 23, 2013, finding that 10 months was a reasonable time for implementation. Additional details about the dispute, which involved a challenge brought by Canada and Mexico over 2008 COOL provisions for beef and pork products, appear in Issue 446 of this Update. According to a news source, the labeling program has sharply reduced U.S. imports of Canadian pigs and cattle, because it purportedly raised U.S. packers’ costs by requiring them to segregate imported animals from U.S. livestock. COOL supporters contend that such labeling provides consumers with important information about food origins. Canada’s International Trade Minister Ed Fast and Agriculture Minister Gerry Ritz reportedly said, “We are particularly pleased that the arbitrator determined a reasonable period of time close to that proposed by Canada and…
A Mexican lawmaker has proposed a 50 percent tax on chewing gum. According to news sources, Institutional Revolutionary Party Deputy Juan Manuel Diez Francos claims such a tax could fund efforts to clean up the gum discarded in various public venues. Mexico is apparently the second largest consumer of gum behind the United States—citizens chew an average of 2.5 pieces daily. A similar proposal is currently being sought in Northern Ireland for the same reasons. See VOXXI, November 28, 2012.
The Ranchers-Cattlemen Action Legal Fund, United Stockgrowers Association (R-CALF USA) has filed a complaint for declaratory and injunctive relief in a Colorado federal court against the World Trade Organization (WTO) and U.S. Department of Agriculture Secretary Tom Vilsack, alleging that WTO’s determination that the U.S. Country of Origin Labeling Act (COOL) imposes discriminatory burdens on meat imported from Canada and Mexico is contrary to U.S. law and the Uruguay Round Agreements. Made in the USA Foundation, Inc. v. WTO, No. 12-2337 (D. Colo., filed September 1, 2012). Details about WTO’s ruling appear in Issue 419 of this Update. With some 5,400 members in 45 states, R-CALF USA apparently worked with Congress to pass the COOL legislation “that reserves the USA label for only cattle born, raised, and slaughtered in the U.S.A.” The complaint alleges that the plaintiffs will lose income as a result of WTO’s ruling and that its members “are…
The World Trade Organization Appellate Body has partially rejected the U.S. Office of the Trade Representative’s (USTR’s) appeal in a dispute with Canada and Mexico over “country of origin” labeling (COOL) for beef and pork products. After WTO’s Dispute Settlement Panel ruled in November 2011 that specific provisions of the U.S. COOL program provided less favorable treatment to Canadian and Mexican livestock, USTR appealed the ruling on the ground that COOL does not impose unfavorable treatment of imported products because it “requires meat derived from both imported and domestic livestock to be labeled under the exact same set of circumstances.” Additional details about the appeal appear in Issue 433 of this Update. In upholding the Dispute Panel’s assessment, the WTO Appellate Body agreed that “the COOL measure treats imported livestock differently than domestic livestock,” in part because it creates “an incentive in favor of processing exclusively domestic livestock and a…
Concluding that “dolphin-safe” tuna product labels authorized by the U.S. Commerce Department “are more trade-restrictive than necessary to achieve a legitimate objective,” a World Trade Organization (WTO) panel has given a partial victory to Mexico, which filed a complaint in 2009 claiming that the labels were illegal because they excluded Mexican yellowfin tuna from the U.S. market and shut down one-third of its tuna fleet. The WTO panel rejected Mexico’s claim that the U.S. labeling provisions discriminate against its tuna products, finding “that Mexican tuna products are not afforded less favourable treatment than tuna products of the US and other origins in respect of the US dolphin safe labeling provisions on the basis of their origin.” Still, the panel recommended that the United States be asked “to bring its measures into conformity with its obligations” under the Technical Barriers to Trade agreement. Mexican Economy Secretary Bruno Ferrari reportedly responded to news…
Mexico has reportedly approved its first pilot program to grow genetically modified (GM) corn. Noting that “it is necessary to advance the use of biotechnology to reduce imports and promote national production,” the Ministry of Agriculture approved the planting of GM yellow corn on approximately 2.5 acres in the northern state of Tamaulipas. Since 2009 when it began allowing GM corn on small experimental fields, the Mexican government has evidently received 121 requests for permits and allowed approximately 170 acres. According to the ministry, a pilot program is granted after an experimental field has been deemed safe by government inspectors. Although large commercial farms in northern Mexico have welcomed the GM corn to compete with U.S. imports, smaller farms in southern Mexico have expressed concern that the biotech crops could contaminate native red, blue and yellow corn varieties. See Reuters, March 8, 2011.
