Jun 11, 2018Mexico files retaliatory tariffs on frozen fries
The Mexican government has imposed retaliatory tariffs on multiple U.S. products including frozen fries. This action results in an immediate tariff increase from 0 percent to 20 percent.
This is part of an ongoing trade dispute in which the U.S. recently applied its own tariffs on steel and aluminum exports from Mexico.
“Any time trade talks devolve into this type of retaliation as opposed to negotiation, agriculture is a big loser,” said John Keeling, CEO and executive vice president of the National Potato Council. “We want to work with the administration to get all the parties back to the table and conclude a renegotiated NAFTA.”
Mexico has applied retaliatory tariffs in the past during a World Trade Organization (WTO) dispute regarding the ability for its trucks to enter the U.S. The WTO ruled in Mexico’s favor and sanctioned its imposition of retaliatory tariffs, ultimately costing the U.S. industry over $60 million in lost exports.
Though the tariff increases are the same, the NPC said, the Mexican trucking dispute was a different situation in that it was the result of years-long litigation overseen by an impartial body. The group said that, in contrast, what happened with these tariffs is unilateral action by both countries that is the result of a breakdown in trade negotiations.
NPC is working with USDA, the U.S. Trade Representative, the White House and other agricultural organizations to move the negotiations forward.