Mexico’s Senate rejects plan to lift 20 percent fructose tax | VailDaily.com
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Mexico’s Senate rejects plan to lift 20 percent fructose tax

Daily Staff Report

MEXICO CITY – Mexico’s Senate has rejected a proposal to eliminate the 20 percent tax on beverages made with high-fructose corn syrup, a tax that was ruled discriminatory by the World Trade Organization.The Senate voted 47-31 late Thursday against the bill, which had already passed the lower house of Congress.Congress imposed the levy in 2002 at the height of a dispute between Mexico and the United States over sweeteners that pitted Mexican sugar producers against U.S. corn refiners.The U.S. challenged the fructose tax, and in August, the WTO ruled that it was in violation of Mexico’s international trade commitments.The North American Free Trade Agreement, which went into effect in 1994, called for Mexico to be able to export all of its surplus sugar production to the United States after its eighth year.Mexico had surplus sugar production of about 800,000 metric tons from the 2004-2005 crop.Vail, Colorado


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