Tariff slows exports to Mexico
22/11/2010
Mexico is the leading destination for US pork exports by volume and the second-largest market (after Japan) in terms of value. Exports to Mexico set an all-time record in 2009 and appeared to be heading for another record performance this year. But export activity slowed in September, and one major factor may have been a new 5% tariff imposed by Mexico as a result of a trucking dispute, the US Meat Export Federation (USMEF) has said.
The dispute has come about because of a refusal on the part of the US to allow Mexican transportation firms to carry goods to US cities. In spite of the North American Free Trade Agreement, Mexican trucks are usually permitted to deliver to special distribution centres close to the border between the two countries. In response, Mexico has imposed the tariffs on a number of goods including certain cuts of pork.
Total pork and pork variety meat exports to Mexico fell by about 12% in September 2010 compared to August. But exports of hams and shoulders—the cuts subject to the new tariff—dropped by more than 20%.
Canada’s pork exports to Mexico, which are not subject to the tariff, increased by more than 30% over the same period of time.
USMEF president and chief executive, Philip Seng, has said that those who have downplayed the significance of the tariff may have underestimated its impact.
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