During August Mexico increased its tariff of U.S. pork, and it's costing the U.S. pork industry in exports. U.S. pork is now more expensive for Mexicans to buy. And at the same time, Canadian pork is cheaper because it enters Mexico at a zero tariff rate. During the first month of the higher tariff U.S. pork exports to Mexico fell 20 percent while Canada’s exports increased 49 percent. The problem is a dispute between the United States and Mexico over trucks.
The Mexican tariff covers 99 U.S. products, including a 5-percent duty on many pork products, such as unprocessed hams, and a 20 percent tariff on pork rinds. All in retaliation for the United States’ decision to prohibit Mexican trucks from entering the United States.
The National Pork Producers Council is leading a coalition of agricultural, business and manufacturing organizations urging the Obama administration to resolve the trucking issue with Mexico to ensure the United States lives up to its NAFTA obligations. NPPC says – resolving this issue would strengthen the United States’ relationship with one of its most-important trading partners, and it would prove to the world that America stands for free and fair trade — and abides by the agreements it signs.
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