Agribusiness conglomerate Cargill filed suit against Mexico this week, asking the U.S. District Court of New York to enforce a September 2009 arbitral award entered in its favor by a North American Free Trade Agreement arbitration panel in Canada, according to news reports.
The company had alleged that a Mexican tax on high fructose corn syrup was aimed at protecting that nation's domestic sugar producers and unfairly discriminated against imported high fructose corn syrup from 2002 to 2007. Mexico had previously challenged the tribunal's decision in Canadian courts, but the award was upheld.
Cargill is now seeking payment of the original $77 million arbitral award, plus accrued interest and legal costs -- $94.6 million in damages.
Fool contributor Rich Smith has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.