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MEXICO CITY - A protracted dispute over sugar trade between
Mexico and the United States escalated last week when the Mexicans
rejected a U.S. proposal and requested a special arbitration hearing
under a provision of the North American Free Trade Agreement.
The U.S. side, clearly angered about a breakdown in talks, called
the Mexican request inappropriate.
The American Sugar Alliance, a coalition of U.S. sugar producers,
said it was shocked and disappointed.
Mexican officials argue that NAFTA allows them to export up to
575,000 tons a year of their excess sugar to the United States
beginning Oct. 1.
The United States maintains that NAFTA allows for only 110,000 to
120,000 tons. Neither side seems prepared to back down.
Gregory Frazier, a U.S. trade representative negotiator for
agriculture, expressed surprise at the Mexican action. "I
didn't think it would come to this," Frazier said. "I
thought we would keep the negotiations going."
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