NCGA
Encouraged by Vote to Repeal Dominican HFCS Tax (12-29-04)
The National Corn Growers Association (NCGA)
is encouraged by the Dominican Republic Chamber of Deputies’
approval of a measure repealing the country’s discriminatory
tax on beverages sweetened with high fructose corn syrup (HFCS).
The measure, which the chamber passed Monday
by an overwhelming margin, now awaits the signature of Dominican Republic
President Leonel Fernández. Approval of the bill by Fernández
would likely ensure the Dominican Republic’s inclusion in the
Central American Free Trade Agreement (CAFTA).
“The chamber’s vote is a step in
the right direction,” said NCGA President Leon Corzine. “We
look forward to the repeal of this tax and urge President Fernandez
to sign the legislation quickly.”
In November, U.S. Trade Representative Robert
Zoellick outlined a plan to exclude the Dominican Republic from CAFTA
if the country did not repeal its 25 percent tax on products containing
HFCS. Sen. Charles Grassley (R-Iowa) and other lawmakers supported
the action, stating the tax violated the Dominican Republic’s
trade obligations under the World Trade Organization.
Corzine said corn growers appreciate the efforts
of Zoellick, Grassley, House Agriculture Committee Chairman Bob Goodlatte
(R-Va.) and others to protect fair access to the Dominican HFCS market.
“Because of the strong efforts made by
the U.S. administration and key members in Congress, the Dominican
Congress took the necessary action to repeal the tax,” Corzine
said. “We thank them for their support.”
The U.S. wet milling industry, which produces
HFCS, is a significant user of corn. In 2003, more than 5 percent
of the corn crop was used to produce HFCS. NCGA supports efforts to
protect and expand markets for corn and corn products like HFCS through
free and fair trade agreements.