US Takes Mexico to WTO Over Sugar Taxes

WASHINGTON - Mar 16/04 - SNS -- United States Trade Representative Robert B. Zoellick has filed a case against Mexico's imposition of additional sales and distribution taxes on beverages that are not sweetened with cane sugar.

The case brought before the World Trade Organization (WTO) seeks to force Mexico to eliminate the 25% sales tax and 20% distribution tax on those types of sweetened beverages.

News of the action by Zoellick's office was welcomed by Congressman Bob Goodlatte, Chairman of the House Agriculture Committee. "This recent action by USTR was an appropriate move and one which I support in the interest of U.S. agriculture. The only way that the agriculture community can have confidence in future trade agreements is if the Administration actively enforces those already in place."

Zoellick argues Mexico's beverage tax is inconsistent with Mexico's obligations in the WTO to apply taxes on comparable domestic and imported products in a non-discriminatory manner.

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