Mexico City, July 28 - A controversial Mexican tax on fructose could be axed this year after Mexico and the United States reached a key trade deal on sweeteners this week, a Mexican government official said on Friday.
Kenneth Smith, who oversees commercial treaties at the economy ministry, said this week's deal between Mexico and the United States on corn and sugar sweeteners means Mexico's Congress will now likely eliminate the 20 percent tax that Mexico charges soft-drinks firms to use high-fructose corn syrup.
"The agreement ... paves the way for a positive decision," Smith told Reuters.
Under the sweetener pact, Mexico will give duty-free access to at least 475,000 tonnes of U.S. high-fructose corn syrup in the 15 months beginning Oct. 1 and the United States will admit a similar amount of Mexican sugar duty-free.
Mexico and the United States, which share a free-trade agreement with Canada since 1994, had held a dispute over sweeteners for over a decade.