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MEXICO: End to soft drinks tax battle close

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There are signs the trade battle between the US and Mexico concerning the use of high fructose corn syrup in soft drinks and sugar may be nearing an end.

Mexican Agriculture Secretary Javier Usabiaga said this week that "a solution is on its way".

The battle centres on how much sugar Mexico can export to the US and how much HFCS the US can sell to Mexico, where it is used as an alternative sweetener to sugar in products such as soft drinks.

Nearly two years ago, Mexico imposed a tax of up to 20% on soft drinks sweetened with corn syrup, a move that effectively halted US exports of corn syrup to Mexico.

Usabiaga said he was hopeful that Mexico would repeal the tax by the end of this year. In return Mexico wants more access for Mexico's surplus sugar to the US.


Sectors: Soft drinks

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