Mexican trucking issue still costing potato growers

Washington Ag Today February 25, 2011 The two year anniversary is approaching of the Mexican tariffs imposed on certain U.S. goods in a trucking dispute. The U.S. recently put forth a proposal to resolve the dispute but meanwhile the Mexican tariffs remain in place on such exports as French fries.

Matt Harris, Director of Trade for the Washington State Potato Commission, says although Mexico dropped the tariff on frozen potato products last August from 20 percent down to five percent, the potato industry is still losing sales.

Harris: “And so far what we have noticed we have seen about a 29% increase in volume. I mean that, when you look at the grand scheme of things, a 29% increase is great but compared to where we were in 2008 we are not anywhere close to where we should be.”

Harris says when you compare the value of U.S product going to Mexico with the 20 percent tariff for the months of September through December, it totals 16.8 million dollars.

Harris: “When you compare that against a zero percent tariff for those same four months in 2008 we were looking at a 30-million dollar market. And where we are at today, about 20-million dollars. So in a round-about way we have gained but we are still not even close to where we should be.”

Harris is hopeful there will be a resolution of the trucking dispute and an end to the tariffs this spring.

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.