Sen. Grassley turns up heat on Mexico’s treatment of U.S. corn syrup

Sen. Grassley turns up heat on Mexico’s treatment of U.S. corn syrup    Sen. Charles E. Grassley, R-Iowa, chairman of the U.S. Senate Finance Committee asked the Bush administration this week to initiate a World Trade Organization case over Mexico’s tax on soft drinks containing high fructose corn syrup.
   In December 2003, the Mexican Senate voted to maintain a 20-percent tax on soft drinks made with high fructose corn syrup. Mexico first enacted the soda tax in January 2002, shutting out U.S. shipments of high fructose corn syrup from its market.
   “We need to do everything possible to bring Mexico in compliance with its trade commitments [under the WTO],” Grassley said in a statement. “I hope the administration will take action soon. We need to send a strong signal to Mexico.”
   Shortly after the recent Mexican soda tax vote, Grassley, who represents some of the biggest U.S. corn producers, also introduced the Mexican Agricultural Trade Compliance Act, S. 1952. The bill would impose trade duties on Mexican products such as tequila in retaliation for the tax.
   Without the 20-percent duty, Mexico should annually import about 2 million metric tons of U.S.-produced high fructose corn syrup, valued at $620 million dollars, said the Washington-based Corn Refiners Association.