The Hagstrom Report

Agriculture News As It Happens

Mexico lifts tariffs as U.S. permits trucks

Mexico has lifted the tariffs on U.S. exports, including pork, that it had imposed in 2010 in the dispute over Mexican trucks being allowed on U.S. roads, the National Pork Producers Council announced today.

Last week, the U.S. government granted the first permit to a Mexican trucking firm to haul goods into the United States, the NPPC noted. Mexican trucks were supposed to be allowed on U.S. roads under the 1994 North American Free Trade Agreement, but U.S. labor unions and road safety advocates objected to the movement of the trucks and in 2009 Congress failed to reauthorize a pilot program.

The two governments in July signed an agreement resolving the trucking issue. The Transportation Department crafted a cross-border trucking program and the Mexican government cut the retaliatory tariffs by 50 percent.

The remaining tariffs were suspended today after DOT issued the trucking permit.
Doug Wolf, National Pork Producers Council

Doug Wolf, National Pork Producers Council
“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, Wis.

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