Corn Products International Updates NAFTA Proceedings
December 19 2007 - 1:42PM
PR Newswire (US)
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. DATASOURCE: Corn Products International, Inc. CONTACT:
Dave Prichard of Corn Products International, Inc., +1-708-551-2592
Web site: http://www.cornproducts.com/
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