US: Cargill settles Mexico trade award dispute
US agribusiness giant Cargill has settled a long-running dispute with the Mexican government over trade barriers erected against high-fructose corn syrup.
Cargill reportedly filed a claims against Mexico in 2005 under Chapter 11 of the North American Free Trade Agreement, which allows companies to sue member countries of the treaty for actions that affect their investments.
In 2009, an international arbitration panel concluded that Mexico had breached the act, thus increasing the price of corn syrup. It subsequently awarded Cargill damages of $77.3m, according to Reuters.
The firm, however, took the government to court in December last year, claiming it had failed to pay the award and that it was now worth US$94.6m.
A spokesperson for Cargill confirmed the matter had now been settled.
"Cargill is pleased that this matter has been resolved. We are dedicated to compliance with NAFTA and believe NAFTA is a positive force for trade relations among the United States, Canada and Mexico. We will continue to invest in our Mexican business operations to better serve and support our customers in Mexico."
Cargill is one of the world’s largest companies in the food and agricultural industries. This profile looks specifically at its operations in the ingredients arena, which although representing just on...
The report presents detailed data on consumption trends in the Solid Fats category in Australia, analyzing consumption volumes and values at segment level. It also provides indispensable data on distr...
The report presents detailed data on consumption trends in the Oils category in Australia, analyzing consumption volumes and values at segment level. It also provides indispensable data on distributio...
The report presents detailed data on consumption trends in the Molasses category in Japan, analyzing consumption volumes and values. It also provides indispensable data on distribution channels, profi...
- Premier Foods CEO expects UK supermarket rebound
- Briefing: The risks and rewards of e-tail in China
- Unilever must "speed" response to consumer trends
- Why Post is increasing its exposure to cereal
- Global factors hold sway over UK milk prices
- Post Holdings strikes deal to acquire MOM Brands
- Crisp maker Sibell acquires Spain's Celigueta
- Food industry news of week: Unilever, PepsiCo
- Up & Go breakfast drinks set for UK launch
- Greencore expands UK, US sales
- 10 Key Trends in Food, Health and Nutrition 2015
- The Sugar Backlash and its Effects on Global Consumer Markets
- The Future of Retailing in the UK to 2017
- Unilever - Strategy and SWOT Report
- Global Consumer Trend Framework: Understanding Attitudes and Behaviors that Influence Global Consumption Habits