Amid talks to implement a new cross-border trucking program, Mexican Trade Minister Bruno Ferrari announced this week that Mexico will no longer rotate a list of exports subject to retaliatory tariffs. While the tariffs on 99 exports worth over $2 billion will remain in place, Mexico has agreed to cease its "carousel" strategy of rotating tariffs between a broad range of exported American products, including fresh produce.
Because the United States is not currently meeting its NAFTA obligations to allow a pilot program of Mexican trucks entering the U.S., Mexico has placed retaliatory tariffs on many American goods including fresh produce items entering Mexico. Given the economic impact upon the fresh produce industry and the damage caused to U.S.-Mexico trade, United Fresh contends that the crisis must be resolved urgently.
"While there remains a great deal of discussion to be had and work to be done, this is certainly an encouraging sign," said Julie Manes, United's director of government relations. "Coupled with last week's announcement of a proposed cross-border trucking program from the Department of Transportation, this is another step toward resolving this longstanding dispute and getting our trade relations back to normal."
Under the Omnibus Appropriations Act of 2009, Congress blocked funding for the Mexican Cross-Border Truck Safety Program. This was a pilot program allowing a small number of Mexican trucks to enter the U.S. while operating in international commerce. Though this program did not provide the full access that the Mexicans were entitled under our NAFTA obligations, the program had been in operation without retaliation since 2007. By removing this program, the United States is now in violation of its NAFTA commitments and excessive tariffs have been placed on U.S. products totaling $2 billion.
For more information, please contact Julie Manes at 202-303-3400, ext. 404.
Source: United Fresh Produce Association
