US: US groups push for Mexican soft drink tax reversal
US agricultural organisations are calling on the country's government to apply pressure to its Mexican counterpart to drop the newly applied taxes on soft drinks containing high fructose corn syrup (HFCS).
Quoted in a Dow Jones report, American Farm Bureau Federation president Bob Stallman said: "This tax will shut off US exports of HFCS to Mexico and severely hamper our corn sales to that market."
The new Mexican tax is encouraging domestic soft drink producers to switch from HFCS to sugar as their main sweetener, at a time when Mexican sugar manufacturers are combating low prices and an over supply.
Stallman, speaking at the Farm Bureau's annual convention in Reno said: "It's pretty serious in trade terms what they're (Mexico) trying to do."
The Corn Refiners Association and the US Feed Grains Council joined in the lobbying campaign.
Mexico is currently asking for more Mexican sugar to be allowed into the US.
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