Cross-Border Trucking Agreement With Mexico Signed
July 6, 2011 The governments of the U.S. and Mexico signed an agreement that will end a two-year conflict resulting in the imposition of rotating retaliatory taxes on American produce entering Mexico. The agreement reduces the tariffs placed on U.S. exports to Mexico by half, with the remaining half to cease upon the clearance of Mexican shipments to cross the American border.
The Alliance to Keep U.S. Jobs, a coalition of more than 170 industry and agriculture organizations, applauded the signing to reinstate a cross-border trucking pilot program, immediately eliminating 50% of retaliatory tariffs on $2.4 billion worth of U.S. manufactured and agricultural exports. Nearly every state has been impacted by the tariffs, and will continue to be impacted until the cross-border trucking program begins.
The alliance urged the Obama administration to implement the program as quickly as possible, allowing the remaining 50% of the tariff to be suspended. The Alliance also urged the support of the U.S. Congress for the resolution of this long-standing dispute.
United Fresh also greeted the passage of the agreement, as director of government relations Julie Manes said the U.S. produce industry eagerly anticipates resumption of unfettered trade with Mexico. “This accord is fantastic news for the produce industry, and we are excited to see more trade with Mexico, which provides such a valuable market for American produce,” she said in a press release. “United Fresh recognizes and applauds the work of the Department of Transportation and the office of the U.S. Trade Representative for their dedication in pursuing a workable, expedited solution to this standoff that has lingered for too long. As part of the Alliance to Keep U.S. Jobs, we’ve worked hand in hand with our partners in the industry and in Washington to provide feedback and insight on this issue and we are very happy that the end is close in sight.”
USApple also applauded the signing, saying that as a result, the 20% import duty on U.S. apple exports into Mexico will be reduced shortly to 10%, with the remainder ceasing once the first Mexican truck is certified to enter the U.S. “We are extremely pleased to see the agreement signed,” said USApple president and CEO Nancy Foster. “Mexico is the largest export market for U.S. apple growers. This is an important step towards ending the long-standing dispute which will enhance our long-term relationship with Mexican consumers.”
In the year prior to imposition of Mexico’s 20% import duty last August, the U.S. exported 11.5 million boxes (bushels) of fresh U.S. apples to Mexico worth $207 million – 27.5 % of total U.S. apple export value. USApple filed regulatory comments with the U.S. Department of Transportation in support of the agreement. The association also is active in the Alliance to Keep U.S. Jobs, noting the coalition worked hard with transportation and trade officials to resolve the dispute.
Tom Nassif, president and CEO of Western Growers, noted that sales of a lot of crops grown in California were especially hurt by the tariffs. Growers of pears, grapes, onions, lettuce, almonds, strawberries, cherries, apricots and dates have seen sales to Mexico drop considerably due to the tariffs. These tariffs were in retaliation to the U.S. government’s termination of the pilot trucking program. An estimated $900 million in U.S. agriculture products have been impacted by the tariffs.
“Today’s agreement between the United States and Mexico means the fresh produce industry will no longer be caught in the middle of a dispute that created an economic barrier to trade for our farmers,” said Nassif. “We look forward to its full implementation later this summer.”
The president of the California Grape & Tree Fruit League, Barry Bedwell, issued the following statement of encouragement on the continuing cooperation between the U.S. and Mexico. “On behalf of the growers and shippers of California’s fresh grape and deciduous tree fruit communities, I applaud the U.S. and Mexico for the commitment to reinvigorate the cross-border trucking program between the two countries, thus improving trade relations and halving retaliatory tariffs which severely impacted shipments of domestic produce to Mexico. We expect tariffs on grapes, apricots, cherries and pears will be halved (20% to 10%) as we draw closer to full resolution on the dispute over allowing Mexican trucks and drivers to operate on long hauls from Mexico into the U.S. Although encouraged by the recent event, the League will continue its effort to support quick implementation of the U.S. Department of Transportation pilot trucking program, which we hope will result in the lifting of the remaining tariff as soon as the first Mexican carrier receives full authority to resume operations in the U.S. The signing of the memorandum of understanding between the two countries will help to strengthen the relationship between the trading partners, bolstering the export market for agricultural commodities to Mexico.”
For a story on the Texas Farm Bureau’s experience,.
Sources: Industry association news releases
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