Policy & Politics

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Tariffs lifted as truck dispute resolved

Published Jul. 20, 2011

Tariffs lifted as truck dispute resolved

A recently-signed memorandum between Mexico and the United States brought an end to the long-running dispute over Mexican truck access north of the border.

This is the first step in the process for Mexico to remove its retaliatory tariffs on U.S. agricultural goods, with 50 percent of the tariffs being lifted upon signing and the remaining tariffs being removed once the first Mexican truck that meets U.S. requirements enters the United States.

Mexicoís retaliation has resulted in duties ranging from 5 percent to 25 percent on targeted fresh and processed U.S. agricultural products destined for the Mexican market.

It is important that the United States live up to its trade agreement obligations under the North American Free Trade Agreement (NAFTA) allowing for the cross-border delivery of international cargo from Mexico into the United States, according to AFBF. Any effort by Congress to prohibit this from moving forward will cause Mexico to once again put tariffs in place, putting the burden of non-compliance back on U.S. farmers.



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