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MEXICO: Government axes soft drink tax

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Mexico has suspended a 20% soft-drink tax that effectively blocked imports of corn syrup into the country, a move that has met with approval from the US corn syrup industry. However US suppliers also warned that any attempt to reinstate it would result in US trade sanctions. The tax, which has been lifted at least until September 30th, forced Mexican soft-drink manufacturers, to switch from high fructose corn syrup to sugar, in an attempt to boost a flagging domestic sugar industry.


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