U.S. agra-business companies pushed for their right to affordably import high fructose corn syrup to Mexico and secured a record-setting $77.3 million arbitration award.
Cargill and other companies invoked NAFTA’s investment protection act to challenge a Mexican law that placed tough restrictions on import and levied a 20% import tax on companies that used high fructose corn syrum. The law’s purpose was to encourage Mexican businesses to use Mexican sugar. Though the restrictions ended in 2008, Mexico is still responsible for damages incurred during the six years it was in effect.
The award is the last in a series of multi-million dollar awards, and the largest NAFTA-related award to date, according to Law.com, which reported the Cargill decision.
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