Durbin Says High Fructose Corn Syrup Trade Good for the Nation and Boon for 10,000 Illinois Workers
DURBIN SAYS HIGH FRUCTOSE CORN SYRUP TRADE GOOD FOR THE NATION AND BOON FOR 10,000 ILLINOIS WORKERS
Friday, July 28, 2006
[WASHINGTON, DC] - U.S. Senator Dick Durbin (D-IL) today said he was pleased that the United States and Mexico have announced a bilateral agreement that spells good news for 10,000 Illinoisans involved in the production of high fructose corn syrup and will lead to free trade in sweeteners between the two countries by 2008.
The sweetener trade dispute with Mexico has had serious economic consequences for Illinois businesses and farmers. Illinois is the nation's second leading producer of corn and is among the top producers of high fructose corn syrup (HFCS). According to industry estimates, Mexico's HFCS trade barriers have cost the United States nearly $950 million annually in lost sales and depressed corn prices by six to ten cents per bushel. The corn wet milling industry, which produces HFCS, employs more than 10,000 Illinoisans with a payroll of more than $500 million.
"I am happy to see this long-overdue trade dispute resolved. Illinois farmers and businesses have borne significant losses in this trade war, and today's announcement shows progress has been made," said Durbin. "Not only will it liberalize the sweetener trade by January 1, 2008, it also gives American and Mexican businesses some lead time to make plans for the common sweetener market and reinforces the goals of NAFTA."
For more than ten years, the United States has been fighting the Mexican government's various attempts to block imports of U.S.-produced high fructose corn syrup and soft drinks made with corn syrup sweeteners. On several occasions, most recently in November 2005, the Mexican government imposed taxes and other barriers to trade that restricted U.S. exports of HFCS. Multiple World Trade Organization (WTO) and NAFTA dispute resolution panels have upheld U.S. claims that the Mexican government was acting contrary to global trade rules and Mexican obligations under NAFTA.
On June 15, 2006, Durbin led a bipartisan effort to urge Mexico's Economy Secretary Garcia de Alba to resolve the ongoing sweetener dispute. He was joined in his effort by a bipartisan group of legislators including Senators Chuck Hagel (R-NE), Tom Harkin (D-IA), Bill Frist (R-TN), Chuck Grassley (R-IA), and Evan Bayh (D-IN).
Under the new agreement, Mexico has agreed to remove its tax on beverages containing HFCS and will provide duty-free access to up to 250,000 metric tons per year during the next two marketing years. Effective January 1, 2008, Mexico will not impose duties on U.S. HFCS. In addition, the United States will provide similar duty-free access to an equivalent amount of Mexican sugar during the next two marketing years.
http://durbin.senate.gov/record.cfm?id=259987&&