2004News

Take it or leave it

The US has taken the position that if the Dominican Senate keeps the 25% tax on corn syrup imported from the US added in the Chamber of Deputies to the tax reform proposal currently being debated, they will discard the bilateral free trade accord with the Dominican Republic. The additional tax was requested by the DR’s two leading sugar producers, who at present hold a monopoly on sugar imports in the country and argue that new imports will cause detriment to the local sugar industry. Peter F Allgeier, US Deputy Trade Representative, wrote to the Dominican Ambassador in the US, Hugo Guiliani Cury, to indicate that such a tax would be discriminatory to US sweet producers and contrary to the agreements signed with the World Trade Organization and the reciprocal spirit of the trade act signed on 5 August 2004. Corn syrup imports would be attractive to soft-drink bottlers, given its lower cost compared to cane sugar sweeteners.