World Trade Organization

• Author: International Law Group

On January 28, 2000, a Dispute Settlement Panel of the World Trade Organization (WTO) circulated its Report in the U.S.-Mexico dispute regarding Mexico's anti-dumping investigation of high-fructose corn syrup (HFCS) from the U.S., grades 42 and 55. HFCS is a sweetener used for soft drinks and other food products.

At the request of the Mexican National Chamber of Sugar and Alcohol Industries, the Mexican Secretariat of Commerce and Industrial Development (SECOFI) began its anti-dumping investigation of U.S. HFCS in 1997. In its final determination published on January 23, 1998, Mexico inflicted definitive anti-dumping measures on HFCS imports from the U.S. Specifically, it exacted duties ranging from U.S.$ 63.75 to U.S. $100.60 per metric ton of HFCS grade 42, and U.S.$ 55.37 to $175.50 per metric ton of HFCS grade 55.

The U.S. brought its WTO complaint on May 8, 1998, challenging the anti-dumping investigation and the anti-dumping duties imposed. The U.S. challenge also focused on Mexico's inadequate showing of injury to the Mexican sweetener industry.

The Panel agrees with the U.S. that the Mexican investigative procedures failed to comply with the WTO Anti-Dumping Agreement. Moreover, it finds that Mexico's anti-dumping measures clashed with the Anti-Dumping Agreement in several substantive respects.

In the first place, Mexico failed to adequately consider the impact of dumped imports on its domestic industry. For example, it determined the...