Officials in the US and Mexico have resolved the cross-border trucking dispute between the two countries in a move which will immediately lift half of the retaliatory tariffs applied by Mexico to US$2.4bn-worth of US exports, including fresh produce.
The remaining 50 per cent of duties will be lifted once Mexican shipments are also cleared to cross the US border.
The agreement, signed by the governments of both nations on Wednesday 6 July, ends a 23-month-long conflict which has been welcomed by industry representatives.
“This accord is fantastic news for the produce industry, and we are excited to see more trade with Mexico, which provides such a valuable market for American produce,” said United Fresh Director of Government Relations Julie Manes.
Bob Stallman, president of the American Farm Bureau Federation, added: “It is important that the US live up to its trade agreement obligations under the North American Free Trade Agreement (Nafta) allowing for the cross-border delivery of international cargo from Mexico into the US.
“Any effort by Congress to prohibit this from moving forward will cause Mexico to once again put tariffs in place, putting the burden of non-compliance back on US farmers,” Mr Stallman explained.
According to American Trucking Associations president and CEO Bill Graves, Mexican fleets participating in the programme will be bound by the same rules and regulations applicable to US carriers.
The dispute emerged in 2009 when the US ended a pilot programme to allow Mexican truck drivers to operate in the US under the framework of Nafta, which promised cross-border access when the agreement was inked in 1994.
Mexico’s retaliation has resulted in duties ranging from 5 per cent to 25 per cent on targeted fresh and processed US agricultural products destined for the Mexican market.
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