Mexico reduces tariff on U.S. fries but expands retaliatory product list

Mexico reduces tariff on U.S. fries but expands retaliatory product list

Washington Ag Today August 20, 2010 There was good news and bad news out of Mexico this week regarding the retaliatory tariffs imposed on U.S. exports there because of a trucking dispute. Matt Harris, Director of Trade for the Washington State Potato Commission, says Mexico has reduced the tariff on U.S. frozen fries.

Harris: “Frozen French fries have had a 20% tariff and we have seen that reduced from 20% to 5%. Now, we don‘t know what that will do as far as our ability to kind of claw our way back into the market. We have already lost about a 40-million dollar market share in Mexico, that pertains to U.S. frozen French fries. So it is going to take some time for industry to work its way back and rebuild what we once had.”

The fry tariff was reduced but Harris says Mexico added a host of other items to the retaliatory list, like a 20 percent tariff on apples and a ten percent tariff on onions.

Harris: “Since Mexico has put more tariffs on more ag products it is about time the Administration take heed and actually work with Mexico and try and resolve this issue, because we can‘t handle this anymore.”

Harris says when you look at the broadened retaliatory list it appears Mexico is trying to create more angst with U.S. business against the Administration to fix the problem.

That’s Washington Ag Today. 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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