99-13489. Mexican Practices Affecting High Fructose Corn Syrup (HFCS)

[Federal Register Volume 64, Number 102 (Thursday, May 27, 1999)]
[Notices]
[Page 28860]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-13489]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket No. 301-118]


Mexican Practices Affecting High Fructose Corn Syrup (HFCS)

AGENCY: Office of the United States Trade Representative.

ACTION: Notice of results of section 302 investigation.

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SUMMARY: The United States Trade Representative (USTR) has conducted an 
investigation initiated under section 302(a) of the Trade Act of 1974, 
as amended (the Trade Act) (19 U.S.C. 2412(a)), with respect to certain 
acts, policies and practices of the Government of Mexico that affect 
access to the Mexican market for high fructose corn syrup (HFCS). The 
USTR initiated this investigation on May 15, 1998, in response to a 
petition filed by the Corn Refiners Association, Inc. Because the 
matters investigated suggest that the Government of Mexico unreasonably 
encouraged and supported an agreement between representatives of the 
Mexican sugar industry and the Mexican soft drink bottling industry to 
limit the soft drink industry's purchases of HFCS, the USTR has 
determined that it would be appropriate to explore further the nature 
and consequences of Mexican Government involvement in this matter and 
to continue consultations with the Government of Mexico on issues 
related to trade in HFCS, with the aim of securing fair and equitable 
market opportunities for U.S. producers.

ADDRESSES: Office of the United States Trade Representative, 600 17th 
Street, NW, Washington, DC 20508.

FOR FURTHER INFORMATION CONTACT: John Melle, Senior Director, North 
American Affairs, [phone] or Demetrios Marantis, Assistant 
General Counsel, [phone].

SUPPLEMENTARY INFORMATION: On April 2, 1998, the Corn Refiners 
Association, Inc. filed a petition pursuant to section 302(a) of the 
Trade Act alleging that certain acts, policies and practices of the 
Government of Mexico affecting HFCS are actionable under section 301 of 
the Trade Act because they are unreasonable and deny fair and equitable 
market opportunities for U.S. exporters of HFCS. In particular, the 
petition alleged that, with the support and encouragement of the 
Government of Mexico, representatives of the Mexican sugar industry and 
the Mexican soft drink bottling industry entered into an agreement in 
September 1997 to limit the soft drink industry's purchases of HFCS. 
According to the petition, the purpose and effect of this agreement was 
to restrict both the volume of HFCS imports from the United States and 
the purchases of HFCS by the U.S. companies that have made investments 
in Mexican production facilities. The petition further alleged that the 
Government of Mexico actively supports this agreement, which has 
reduced U.S. exports of HFCS to Mexico and therefore burdens and 
restricts U.S. commerce.
    On May 15, 1998, the USTR determined that an investigation should 
be initiated under section 302(a) of the Trade Act. Section 304(a) of 
the Trade Act requires the USTR to issue a determination in cases, such 
as this, which do not involve a trade agreement, within twelve months 
after the date on which the investigation is initiated.
    The matters investigated suggest that the Government of Mexico 
unreasonably encouraged and supported an agreement between 
representatives of the Mexican sugar industry and the Mexican soft 
drink bottling industry to limit the soft drink industry's purchases of 
HFCS. Press reports indicate that Mexican Government officials have 
applauded the conclusion of this agreement and endorsed the goal of 
avoiding an increase in imports of HFCS; and the Government of Mexico 
has not refuted these allegations. Therefore, the USTR has determined 
that it would be appropriate to explore further the nature and 
consequences of Mexican Government involvement in this matter. In this 
regard, the United States will, as a high priority, continue 
consultations with the Government of Mexico on issues related to trade 
in HFCS, with the aim of securing fair and equitable market 
opportunities for U.S. producers.
Demetrios J. Marantis,
Acting Chairman, Section 301 Committee.
[FR Doc. 99-13489 Filed 5-26-99; 8:45 am]
BILLING CODE 3190-01-P