Mexico Files Formal Challenge

Published online: Aug 18, 2000
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U.S. sugar industry disappointed Mexican industry is challenging the sugar provisions of the NAFTA.

According to a recent ASA news release, Mexico filed a formal challenge Aug. 17 to the sugar agreement under dispute in settlement provisions of NAFTA.

The American Sugar Alliance issued a statement through its trade counsel that it is "shocked and disappointed that the Mexican government and the Mexican sugar industry are challenging the validity of the sugar provisions of the NAFTA."

Ambassador Jeffrey Lang, a former Deputy U.S. Trade Representative, noted that NAFTA is the only agreement in the world that would lead to genuine regional free trade in sugar. But since implementation, Mexico has used almost $2 billion in subsidies to produce a massive surplus of sugar. He also noted the World Trade Organization has determined Mexico is illegally limiting U.S. exports of corn sweeteners.