High Fructose Corn Syrup and Cane Sugar Industries Introduction

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High Fructose Corn Syrup and Cane Sugar Industries Introduction

In my previous paper I did my research on the history, production, and trade of cane sugar that was mostly produced in the United States. On our study abroad trip to Mexico we saw some sugar cane fields from the road, but we did get to tour any of the farms or see any sugar processing factories. So I was thinking to myself how I am going to write a paper on sugar cane in Mexico if I never experienced any of it while I was down there. Fortunately I found a topic that was very close to home and related to some of the agriculture in Mexico as well. While visiting the Trade Management Services, Inc., we met with the Iowa trade representative, Jose Antonio Jimenez. Jose mentioned some things about the controversy with the United States and Mexico with the imported high fructose corn syrup into Mexico and the effects it has had on the sugar markets and the producers. Since Iowa is the number one grower of corn in the United States, and number one in producing high fructose corn syrup, it is a major issue for Iowans because of the great market share we have with Mexico. In this essay I will discuss some of the issues with the trade barriers, taxes, and tariffs the two countries have opposed on each other.

Throughout the late 1990's and the beginning of the twenty first century there has been a major controversy on United States exports of high fructose corn syrup with Mexico. The United States Trade Representative has conducted an investigation under the Trade Act of 1974, which has been amended to the certain acts, policies and practices of the Mexican government that affects the Mexican market for high fructose corn syrup. On April 2, 1998, the Corn Refiners Association Inc. filed a petition alleging that certain

acts, policies, and practices of the Government of Mexico are affecting the Trade Act because they are unreasonable and deny fair and equitable market opportunities for United States exporters of high fructose corn syrup. The United States Trade representative started their investigation on May 15, 1998, in response to the petition filed by the Corn Refiners Association Inc. They believed that the Mexican government encouraged and supported an agreement between the Mexican sugar industry and the Mexican soft drink bottling industry to limit the soft drink bottling industry's purchases of high fructose corn syrup.

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