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FOR
IMMEDIATE RELEASE
NATIONAL CORN GROWERS ASSOCIATION
CONTACTS:
Audrae Erickson, CRA , 202-331-1634
Mimi Ricketts, NCGA, 636-733-9004,
ext. 112
Cheri Johnson, USGC, 202 789-0789
September 30, 2004
U.S. Corn Industry
Voices Opposition to Dominican Republic Soda Tax
WASHINGTON (September 30, 2004) -- Three U.S. corn industry organizations
sent a letter Wednesday to U.S. Trade Representative Robert Zoellick
expressing strong opposition to legislation approved by the Dominican
Republic Congress that will impose a 25 percent tax on all beverages
sold in that country that are sweetened with high-fructose corn syrup
(HFCS). The letter was sent by the Corn Refiners Association (CRA),
National Corn Growers Association (NCGA) and the U.S. Grains Council
(USGC).
The letter states, “In light of these circumstances, the undersigned
organizations strongly oppose the inclusion of the Dominican Republic
in the Central America Free Trade Agreement (CAFTA).” The letter
calls on the Bush administration to suspend all action on the Dominican
Republic Free Trade Agreement (FTA).
“Our trading partners should not be allowed to change the terms
of an agreement after the ink is dry,” asserted Audrae Erickson,
CRA president. “If the Dominican Republic wants to eliminate
two-way trade in sweeteners between our two countries, then CRA will
call for appropriate action. A deal is a deal.”
The letter continues: “Support
for the Dominican Republic FTA rested on commitments made promising
access for HFCS and corn products.
Renegotiation of those provisions in the tax package violates the letter
and the spirit of that agreement.”
NCGA President Dee Vaughan
said the association strongly supports free trade agreements that
increase access for corn growers and U.S.
agriculture. “However, when agreements are negotiated in bad
faith, they are not worth the paper they are written on,” he
said.
“The Dominican Republic has been a valuable customer for U.S.
feed grains and we strongly hope this issue is resolved quickly and
efficiently,” said Paul Williams, USGC chairman. “We do
not want this situation to impede progress of the CAFTA as it’s
a strong agreement for U.S. agriculture and provides for further expansion
of demand in the region.”
The CRA, NCGA and USGC have called on the Dominican Republic to repeal
the provision and call upon other CAFTA countries to work with the
United States to resolve the dispute. Leaders of all three organizations
noted that failure to do so may not only jeopardize the Dominican Republic
FTA, but could complicate overall passage of the CAFTA, an agreement
that the corn industry otherwise supports.
To read the full text of the letter, visit the NCGA web site at www.ncga.com.
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