A review of sugar related disputes under the North American Free Trade Agreement

Although significant advances have been made in the journey towards free tr ade in sugar and HFCS in North America, Mexico and the United States have y et to resolve several outstanding disputes over the terms of the NAFTA agre ement. Both sides are acting in the interest of their producers, but becaus e of this the disputes may last longer than the fifteen year transition per iod, due to end in 2009. There is evidence of some success in the transitio n, but several significant disputes are ongoing. It is projected that as a result of the agreement US HFCS exports into Mexico will surge, and Mexico will gradually decrease its 15% tariff on maize sweeteners under NAFTA. Mex ico suffers a dearth of high quality domestic refined sugar and it is sugge sted that the agreement will increase Mexican HFCS demand. The demand for H FCS is expected to fall in the US as Mexico increases its net surplus sugar production.