Mexico Agreement Signed

Mexico Agreement Signed. I’m Greg Martin with today’s Fruit Grower Report.

Over 2 years ago the Mexican government imposed a number of tariffs on U.S. products including many ag commodities in a dispute over a trucking issue. The tariffs have put a hardship on the ag industry while politicians attempted to sort out the issue. Yesterday Agriculture Secretary Tom Vilsack talked about the agreement signed by Mexico and the United States to resolve the cross-border long-haul trucking dispute.

VILSACK: That truck agreement calls for certain safety standards in Mexican trucks coming into the United States, certain requirements of the drivers of those trucks that they have safe driving records, that they know our language, that they understand our traffic rules and will abide by them, that they have a good documented safety record.

This dispute has cost U.S. businesses more than $2 billion. For U.S. farm exports to Mexico, exports of affected commodities were reduced by 27 percent. President Obama.

OBAMA: After nearly 20 years we finally have found a clear path to resolving the dispute over trucking between our two countries.

The phase-ins begin on July 8, when Mexico reduces the existing tariffs on U.S. goods by 50 percent. The remaining 50 percent will be suspended within five business days from the date on which the first Mexican carrier receives authorization under the new program. Potentially, we're looking at a total lifting of the punitive tariffs in as little as 45 days.

That’s today’s Fruit Grower Report. I’m Greg Martin on the Ag Information Network.