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July 19, 2002
California Table Grapes Debut in Australia
On Tuesday, July 16, 2002, the first consignments of table grapes from California arrived in Sydney, Melbourne, and Brisbane via airfreight, following years of negotiations on a market access protocol. The total shipment consisted of 132 cartons of Flame Seedless grapes valued at approximately at $4,800. U.S. industry contacts believe that this market, which is counter-seasonal to the Northern Hemisphere, has considerable export potential that could reach $10 million dollars annually.
Mexico Re-Instates Tax on Drinks Using High Fructose Corn Syrup
On July 12, 2002, Mexico's Supreme Court of Justice (SCJN) voted unanimously to re-instate a 20-percent tax on soft drinks and beverages that contain high fructose corn syrup (HFCS) that had been temporarily suspended by President Fox in March 2002. The tax will be imposed again starting July 16, 2002 and will not be applied retroactively for the period from March 6, 2002 to July 15, 2002. Out of uncertainty over the outcome of this case, soft drink makers essentially have not used any HFCS since January. U.S. HFCS producers and corn growers have strongly urged that the tax be eliminated. This SCJN decision now implies that only the Mexican Congress, and not President Fox, can lift the tax. Prior to this year Mexico consumed about 600,000 tons of HFCS annually, with about 80 percent of use in the beverage industry. The United States in recent years supplied about 250,000 tons of HFCS annually to Mexico, and Mexican production of 350,000 tons required 700,000 of corn, virtually all imported from the US. In January-April 2002, US HFCS exports to Mexico were 1,000 tons, down from 41,000 tons in January-April 2001.
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