WESTCHESTER, Ill.--(BUSINESS WIRE)--Aug. 19, 2009--
On October 21, 2003, Corn Products International, Inc. (NYSE: CPO)
submitted, on its own behalf and on behalf of its Mexican affiliate,
CPIngredientes, S.A. de C.V., a Request for Institution of Arbitration
Proceedings (the "Request") against Mexico pursuant to Chapter 11 of the
North American Free Trade Agreement ("NAFTA"). In the Request, the
Company asserted that the imposition by Mexico of a discriminatory tax
on beverages containing HFCS breached various obligations of Mexico
under the investment protection provisions of NAFTA.
The case was bifurcated into two phases, liability and damages, and a
hearing on liability was held in July 2006. In a Decision dated January
15, 2008, the Tribunal unanimously held that Mexico had violated NAFTA
Article 1102, National Treatment, by treating beverages sweetened with
HFCS produced by foreign companies differently than those sweetened with
domestic sugar. In July 2008, a hearing regarding the quantum of damages
was held before the same Tribunal. Post-hearing submissions on specific
topics relative to the damages claims were filed on October 31, 2008.
In an award rendered August 18, 2009, the Tribunal awarded damages to
the Company in the amount of $58.386 million, representing lost profits
in Mexico as a result of the tax and certain out-of-pocket expenses
incurred by CPIngredientes, together with accrued interest. It is not
known at this time whether any of the parties will seek to set aside the
award or pursue other available rights under applicable law.
About the Company
Corn Products International is one of the world's largest corn refiners
and a major supplier of high-quality food ingredients and industrial
products derived from the wet milling and processing of corn and other
starch-based materials. The Company, headquartered in Westchester, Ill.,
is a leading worldwide producer of dextrose and a major regional
producer of starch, high fructose corn syrup and glucose. In 2008, Corn
Products International reported record net sales and diluted earnings
per share of $3.94 billion and $3.52, respectively, with operations in
15 countries at 33 plants, including wholly owned businesses, affiliates
and alliances. For more information, visit www.cornproducts.com.
Source: Corn Products International, Inc.
Corn Products International, Inc.
Investor: John Barry, (708)
Media: Mark Lindley, (708) 551-2602