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Diplomacy in Action

Archer Daniels Midland Co. and Tate & Lyle Ingredients Americas, Inc. v. United Mexican States


On August 4, 2004, Archer Daniels Midland Co. ("ADM") and A.E. Staley Manufacturing Co. (succeeded by Tate & Lyle), both U.S. corporations, filed a notice of arbitration against Mexico under the ICSID Additional Facility Rules on behalf of themselves andtheir joint venture, ALMEX, a Mexican company. ADM and Tate & Lyle claim that their investments in the high fructose corn syrup industry in Mexico have been adversely impacted by Mexico's 2002 adoption of a tax on beverages that contain high fructose corn syrup ("HFCS"). ADM and Tate & Lyle allege that the tax is aimed at protecting Mexico's domestic sugar producers and excluding high fructose corn syrup from the soft drink sweetener market. Claimants assert that Mexico's HFCS tax violates the national treatment obligation under NAFTA Article 1102, the prohibition on performance requirements in NAFTA Article1106 and the prohibition on expropriation in NAFTA Article 1110. ADM and Tate & Lyle seek damagesnot less than $100 million.

For further information and documents concerning this claim, click here.


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