The American Farm Bureau Federation has called for immediate action to resolve Mexico’s trade retaliation against the US, which it claims is expanding in size and scope due to the US government not meeting obligations to allow Mexican trucks to operate in the US.
Mexico updated its retaliation list yesterday (Thursday 19 August); imposing tariffs on US pork, certain types of US cheese, pistachios, a wide range of US fruits and vegetables and other farm and non-farm goods.
“Mexico is one of our best trading partners and allowing this retaliation to continue for a provision we are obligated to meet is simply unacceptable,” said AFBF President Bob Stallman in a press statement. “The economic impact from this growing list will be significant to many farmers and ranchers.”
Mexico has taken retaliatory action because, under the NAFTA agreement, Mexican motor carriers are allowed to transport international cargo within the US as part of a negotiated cross-border trucking project, in place since 2007.
However, in March 2009, US Congress failed to renew the programme to allow a limited number of trucks from Mexico to haul loads into the US beyond a 25-mile zone.
As a result, Mexico brought a NAFTA case against the US on the issue, which found that the US was not in compliance with its obligations.
As such, Mexico was granted the authority to retaliate if efforts were not taken by the US to comply.
“As we can see from the growing list of agricultural and food items on Mexico’s retaliation list, America’s farmers and ranchers are particularly vulnerable,” Mr Stallman said.
“We sell a huge amount of food and farm goods to Mexico, so we have a lot to lose. As the retaliation list continues to grow, it comes at a steep cost to US agriculture.”
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