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Mexico Escalates Duties On US Imports
 Mike Godfrey - Tax-News.com
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August 19, 2010
Mexico has expanded the list of tariffs imposed on US products from 89 lines to 99, affecting about USD2.5bn of trade annually, in retaliation for the lack of progress towards allowing Mexican trucks to operate in the US.
The tariffs are mainly on agricultural products with 5% on some pork products ranging up to 25% on white cheese, but they are applied on a rotating basis. Other items affected include onions, apples, pears, oranges, cherries, soy sauce, mineral water and sunglasses.
In March 2009, when the tariffs were first imposed, Congress had decided to cancel a pilot program, which allowed 100 Mexican trucks, which met US safety standards, to ply their trade in the US, in preparation for the US to meet its obligations under the North American Free Trade Agreement (NAFTA).
“Every Mexican truck entering the US must meet every US safety requirement, so these are some of the most inspected trucks anywhere in the world," said US Chamber of Commerce President, Thomas J. Donohue, at the time. "Since the pilot project was launched, their safety record has been outstanding."
The present escalation of tariff impositions by Mexico recognizes that no progress was being made towards free movement of Mexican trucks in the US. The National Foreign Trade Council (NFTC) president, Bill Reinsch, said:
"As today's announcement by the Mexican government makes clear, ignoring the trucking issue and failing to abide by our trade commitments has real economic costs. The President has stated his willingness to address the trucking issue, and we urge him to work with Congress to develop a viable solution as soon as possible, one that honors our commitments under NAFTA and which will end Mexico's retaliatory tariffs."
US Trade Representative Ron Kirk has indicated his willingness to work towards resolving the dispute “in a way that addresses safety concerns and upholds trade obligations”.
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