The tax was imposed at the beginning of the year, since when aides to President Vicente Fox have indicated their opposition to the tax. As was the intention, the tax has encouraged domestic Mexican soft-drink companies to use sugar rather than corn syrup as a sweetener, thereby bolstering domestic sugar suppliers suffering from over-production.
MEXICO: Repeal of 20% soft drinks tax looking closer
Mexican government officials have said they intend to seek the repeal of a 20% tax on soft drinks containing US-produced high-fructose corn syrup, according to US Trade Representative Robert Zoellick. He also dismissed reports that Mexico might repeal the tax only partly and retain provisions aimed at the US.