VIENNA, VA – The U.S. Apple Association (USApple) applauds the governments of the U.S. and Mexico today for announcing that they have reached an agreement in principle to resolve a long-standing cross-border trucking dispute. Mexico has committed to end its 20% import duty faced by U.S. apple exports into Mexico when the deal is implemented.
“This agreement is good news for the apple industry,” said Nancy Foster, USApple’s president and CEO. “A permanent solution is needed that provides certainty for our long-term trading relationship with Mexico,” she continued. “U.S. apple growers urge the U.S. and Mexico to reach final agreement on the few remaining technical issues so that a deal can be implemented as soon as possible.”
A U.S.-Mexico cross-border trucking pilot program was in effect until March 2009 when it was terminated by the U.S. Congress at the urging of organized labor. As a result, the U.S. was in violation of its obligations under the North American Free Trade Agreement (NAFTA). Consequently, Mexico exercised its NAFTA rights to impose retaliatory tariffs on $2.4 billion worth of U.S. manufactured and agricultural exports, including apples.
“American apple growers urge Congress to support resolution of this long-standing trucking dispute so that they can regain duty-free market access into Mexico, their largest export market,” urged Foster.
Last year, Mexico imported 11.5 million boxes (bushels) of fresh U.S. apples, worth $207 million. This represents 27.5% of total U.S. apple export value. More than $1 out of every $3 in U.S. apple revenue comes from exports.
Source: U.S. Apple Association
