U.S. acts quickly to avert Brazilian tariffs. Why so slow with Mexico?

Farm and Ranch April 9, 2010 The U.S. and Brazil agreeing to a process to settle a dispute over U.S. subsidies to cotton was good news for potato growers. Without that agreement Brazil would have imposed World Trade Organization approved tariffs this week on several U.S. products. Matt Harris, Director of Trade for the Washington State Potato Commission, says one of those U.S. exports is dehydrated potatoes.

Harris: “We export about one million dollars worth of dehydrated potato products to Brazil. What this would have done to our business, basically Brazil would have increased a tariff that is in place, basically taking us out of a competitive business and allowing European products to come freely back into Brazil and take away all of our market share.”

That tariff would have gone from 14% to 34%.

While the cotton case as it is called, has been around for some time the threat of tariffs is most recent. Harris points out those retaliatory tariffs from Mexico allowed under NAFTA have been in place over a year now.

Harris: “It is very curious that they can fix the Brazilian case but yet they can‘t fix the case against the United States with regard to Mexico.”

The U.S. potato industry says the tariffs imposed in that trucking dispute have cut U.S. shipments of French fries to Mexico in half with Canada picking up the business.

That’s the Northwest Farm and Ranch Report. Brought to you in part by the Washington State Potato Commission. Nutrition today. Good health tomorrow. I’m Bob Hoff on Northwest Aginfo Net.

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