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Mexico Drops One U.S. Pork Trade Case, But Opens Another

by 5m Editor
1 June 2004, at 12:00am

MEXICO - Mexico said on Monday it dropped an anti-dumping investigation into U.S. pork imports in general after it failed to prove damage to local industry. But the nation said separately it was opening another into U.S. pork legs.

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In a statement in the government's official gazette, or Diario Oficial, Mexico's economy ministry said the investigation process was declared concluded and no anti-dumping tariffs would be imposed.

"The (economy) ministry concludes that although margins of price discrimination were found during the period investigated, it was not possible to quantify damage or threat of damage to the industry," the statement read.

Mexico launched the investigation in January 2003 after its pork industry said cheaper U.S. pork imports were depressing local prices and affecting production.

U.S. pork producers said then that their counterparts in Mexico, where duties on imports on many farm goods dropped to zero on January 1 2003, were catering to calls for the agricultural chapter of the North American Free Trade Agreement (NAFTA) to be renegotiated.

Mexico said in a separate statement in Monday's official gazette that it was starting an anti-dumping investigation into imports of U.S. pork legs.

Citing complaints from Mexican farmers, the economy ministry said soaring U.S. pork-leg exports to Mexico appeared to be affecting the industry, depressing local prices and local production.

Mexico's imports of U.S. pork legs rose almost 63 percent between 2001 and 2003, and the meat was sold in the local market at prices that were nearly half those of domestic supplies.

"An anti-dumping investigation into imports of pork legs from the United States is officially declared open," the economy ministry said in the gazette. Economy ministry officials could not be reached for immediate comment.

Source: eFeedLink - 1st June 2004

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