WESTCHESTER, Ill., Dec. 19 /PRNewswire-FirstCall/ -- 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 Company
sought damages of not less than $325 million. The case was bifurcated into
two phases, liability and damages, and a hearing on liability was held in
July 2006.
On December 18, 2007, the Company received an order from the Tribunal
indicating that it had completed its decision on the liability phase.
Although the reasons underlying the decision are not yet available, the order
makes it apparent that the Tribunal has found Mexico in breach of NAFTA. The
Tribunal has ordered the parties to submit dates for briefing on the quantum
of damages for a breach of Article 1102, National Treatment, and has indicated
it intends to issue an order at the beginning of January 2008 setting a
timetable for written and oral argument on the damages questions, with a
hearing to be held prior to August 2008.
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 the number-one
worldwide producer of dextrose and a leading regional producer of starch, high
fructose corn syrup and glucose. Corn Products International has operations
in 15 countries at 35 plants, including wholly owned businesses, affiliates
and alliances. For more information, visit http://www.cornproducts.com.
Forward-Looking Statement
This news release contains or may contain forward-looking statements
within the meaning of Section 27A of the Securities Exchange Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. The Company intends these
forward looking statements to be covered by the safe harbor provisions for
such statements. These statements include, among other things, any
predictions regarding the Company's future financial condition, earnings,
revenues, expenses or other financial items, any statements concerning the
Company's prospects or future operation, including management's plans or
strategies and objectives therefor and any assumptions underlying the
foregoing. These statements can sometimes be identified by the use of forward
looking words such as "may," "will," "should," "anticipate," "believe,"
"plan," "project," "estimate," "expect," "intend," "continue," "pro forma,"
"forecast" or other similar expressions or the negative thereof. All
statements other than statements of historical facts in this release or
referred to in this release are "forward-looking statements." These
statements are subject to certain inherent risks and uncertainties. Although
we believe our expectations reflected in these forward-looking statements are
based on reasonable assumptions, stockholders are cautioned that no assurance
can be given that our expectations will prove correct. Actual results and
developments may differ materially from the expectations conveyed in these
statements, based on various factors, including fluctuations in worldwide
markets for corn and other commodities, and the associated risks of hedging
against such fluctuations; fluctuations in aggregate industry supply and
market demand; general political, economic, business, market and weather
conditions in the various geographic regions and countries in which we
manufacture and/or sell our products; fluctuations in the value of local
currencies, energy costs and availability, freight and shipping costs, and
changes in regulatory controls regarding quotas, tariffs, duties, taxes and
income tax rates; operating difficulties; boiler reliability; our ability to
effectively integrate acquired businesses; labor disputes; genetic and
biotechnology issues; changing consumption preferences and trends; increased
competitive and/or customer pressure in the corn-refining industry; the
outbreak or continuation of serious communicable disease or hostilities
including acts of terrorism; and stock market fluctuation and volatility. Our
forward-looking statements speak only as of the date on which they are made
and we do not undertake any obligation to update any forward-looking statement
to reflect events or circumstances after the date of the statement. If we do
update or correct one or more of these statements, investors and others should
not conclude that we will make additional updates or corrections. For a
further description of these risks, see Risk Factors included in our Annual
Report on Form 10-K for the year ended December 31, 2006 and subsequent
reports on Forms 10-Q or 8-K. This news release also may contain references
to the Company's long term objectives and goals or targets with respect to
certain metrics. These objectives, goals and targets are used as a
motivational and management tool and are indicative of the Company's long term
aspirations only, and they are not intended to constitute, nor should they be
interpreted as, an estimate, projection, forecast or prediction of the
Company's future performance.
SOURCE
Corn Products International, Inc.
CONTACT:
Dave Prichard of Corn Products International, Inc.,
+1-708-551-2592
