Amid talks to implement a new cross-border trucking programme, Mexican Trade Minister Bruno Ferrari has announced this week that Mexico will no longer rotate a list of exports subject to retaliatory tariffs, according to a report by the United Fresh Produce Association.
While the tariffs on 99 exports worth over US$2bn will remain in place, United Fresh said Mexico has agreed to cease its “carousel” strategy of rotating tariffs between a broad range of exported US products, including fresh produce.
Because the US is not currently meeting its NAFTA obligations to allow a pilot programme of Mexican trucks entering the US, Mexico has placed retaliatory tariffs on many US goods including fresh produce items entering Mexico.
Given the economic impact upon the fresh produce industry and the damage caused to US-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 programme allowing a small number of Mexican trucks to enter the US while operating in international commerce.
Although this initiative did not provide the full access that the Mexicans were entitled under our NAFTA obligations, the programme had been in operation without retaliation since 2007.
By removing the deal, United Fresh said the US is now in violation of its NAFTA commitments and, as a result, excessive tariffs have been placed on US products totalling some US$2bn.
