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Tariff on US Pork Lifted by Mexico

by 5m Editor
24 October 2011, at 11:34am

US - The National Pork Producers Council has praised the US and Mexican governments for following through on resolving a trade dispute over trucking.

Mexico lifted tariffs on US exports, including pork, on Friday (21 October) and the US government last week granted the first permit to a Mexican trucking firm to haul goods into the United States.

The two governments in July signed an agreement resolving the trucking issue, with the US Department of Transportation (DOT) crafting a cross-border trucking program and the Mexican government cutting the retaliatory tariffs by 50 per cent. The remaining tariffs were suspended today after DOT issued the trucking permit.

“America’s pork producers are very pleased that the United States issued the first Mexican trucking permit, which has led today to the Mexican government removing the remaining retaliatory tariffs on our products,” said NPPC President Doug Wolf, a producer from Lancaster, Wisconsin.

“Mexico is a very important market for the US pork industry and for many other sectors. More than six million US jobs depend on trade with Mexico.”

The long-standing dispute between the nations was over a provision of the 1994 North American Free Trade Agreement (NAFTA).

The trucking provision was set to become effective in December 1995 but the United States failed to abide by it.

Mexico imposed tariffs on 89 US products in March 2009, after Congress failed to renew a two-year-old pilot programme that allowed a limited number of Mexican trucks into the United States.

Mexico added products, including pork, in August 2010 after the Obama administration failed to present a proposal for resolving the trucking dispute.

“It is important that the United States abides by its NAFTA obligations and does not yield to protectionist forces,” Mr Wolf said.

“US exports and American jobs are at stake.”

Mexico is the second largest market for the US pork industry, which shipped $986 million of pork south of the border in 2010. Since 1993 – the year before NAFTA was implemented – US pork exports to Mexico have increased by 780 per cent.