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NCGA President,
Tim Hume |
NCGA
President Meets with Mexican Economy Secretary to Discuss HFCS (1-22-02)
National Corn Growers
Association (NCGA) President Tim Hume was called to Washington, D.C.,
Friday, Jan. 19, to meet with Mexican trade officials over Mexico's
taxation of soft drinks containing high-fructose corn syrup (HFCS).
The tax on high-fructose
corn syrup, NCGA says, could place an unfair disadvantage on soft drinks
produced from corn sweetener and U.S. corn sales could face a $66 million
reduction.
Hume, a corn grower
from Walsh, Colo., had the opportunity to voice corn growers' concerns
over the soft drink tax in Mexico to Mexican Secretary of Economy, Luis
Derbez. The meeting allowed for discussions about both sides of this
issue, and each party left with a better understanding of each other's
perspective, Hume said.
"It was a good meeting," he continued. "We heard what
we needed to hear and I feel Mr. Derbez was being reasonable. Right
now, both parties are waiting for more information. We were pleased
that we had the opportunity to voice our concerns over this tax to Minister
Derbez and to speak first-hand about the harm to corn growers across
the country."
The value of the
HFCS market in Mexico is about $240 million. However, that includes
HFCS refined using U.S. corn in both the United States and Mexico. Several
corn-processing companies have invested more than $800 million in refineries
in Mexico since the North American Free Trade Agreement was passed.
The HFCS market
in Mexico includes a demand for about 32 million bushels of corn. If
the United States' ability to supply the soft drink market in a cost-effective
manner is diminished by this tax, corn growers across the country will
be hurt, said Hume. He added that Mexico is currently the United States'
number two market for bulk corn exports and NCGA wants to retain that
market for both bulk corn and HFCS.
Last reviewed
January 22, 2002
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