The World Trade Organization is making moves which Iowa Senator Chuck Grassley says will “level the playing field” for Iowa corn growers who are competing on the international market. Grassley says “Mexico has been fighting American agriculture through a law that they passed probably four years ago putting a high tax on any soft drink made with high fructose corn syrup which is made from Iowa’s corn products.”

The W-T-O’s appellate body ruled Monday that Mexico’s tax is discriminatory. Grassley says the tax violates not only W-T-O guidelines but also those laid out in NAFTA, the North American Free Trade Agreement. He says the decision is the “last gasp” by Mexico’s government to keep the tax alive.

Grassley calls it a “real victory for American agriculture” as the U.S. has no impediments on Mexican products coming into our country, and they, likewise should not restrict American goods. He says the Mexican government is being urged to repeal the soft drink tax.

Grassley says if Mexico doesn’t repeal the tax, then the U.S. will be in a position to take legal retaliation against Mexico, likely in the form of the U.S. government putting some sort of import duty on Mexican products coming into the U.S. Grassley says “This trade dispute over high fructose corn syrup has gone on too long. It’s time to get it behind us once and for all.”