20 December, 2007 – Corn Products International has won its legal case against the Mexican Government after it imposed a tax on beverages containing high fructose corn syrup (HFCS), said the US company.
In a statement sent to FLEXNEWS, Corn Products said its petition that Mexico had breached terms of the North American Free Trade Agreement by imposing the tariff was up held on 18 December.
The company filed for damages of US$325 million on behalf of its Mexican affiliate CPIngredientes, S.A. de C.V under Chapter 11 of the trade treaty claiming the country’s “discriminatory” tax on drinks containing HFCS breached various obligations of Mexico under the investment protection provisions of NAFTA.
Corn Products said the case had been divided into two phases, liability and damages. The company announced that after making a Request for Institution of Arbitration Proceedings that was heard in July 2007, the tribunal had ruled in its favour on liability.
The Corn Products statement said: “On December 18, 2007, the Company received an order from the Tribunal indicating that it had completed its decision on the liability phase. Although the reasons underlying the decision are not yet available, the order makes it apparent that the Tribunal has found Mexico in breach of NAFTA.
“The Tribunal has ordered the parties to submit dates for briefing on the quantum of damages for a breach of Article 1102, National Treatment, and has indicated it intends to issue an order at the beginning of January 2008 setting a timetable for written and oral argument on the damages questions, with a hearing to be held prior to August 2008.”