Retaliating over the U.S. ending a pilot program that allowed Mexican trucks to take goods into the U.S., new tariffs have been imposed by Mexico on several U.S. crops and other food items.
Last week we reported that the National Potato Council was calling on the Obama Administration and Congress to either reinstate the funding required to continue the pilot program allowing Mexican trucks into a limited area within U.S. border states or to quickly develop an alternative program that is consistent with U.S. trade obligations to Mexico. The current pilot program was developed to satisfy a 2001 arbitration panel’s decision which found the U.S. was not fulfilling its NAFTA trucking commitments.
As a result of the program being halted, Mexico has added tariffs to several U.S. grown items, including potatoes that now have a tariff of 20%. In addition to potatoes, on the vegetable side tariffs have been imposed on onions, 20%; head lettuce (cabbage lettuce), 10%; and peas, 20%. On the fruit side several crops have been impacted by the tariffs including, strawberries, 20%; grapes, 45%; pears, 20%; apricots, 20%; cherries; 20%; and almonds, 20%.