Mexico has reportedly slapped higher tariffs on US$2.4bn-worth of imports from the US, including fresh produce, in what it claimed to be a retaliatory move following the US government’s decision to end a pilot program allowing some Mexican trucks to transport goods into the US.
The tariff increases, which came into effect yesterday (Thursday 19 March), range between 10 per cent and 45 per cent and affect 90 different products, according to a report by Reuters.
Affected products come from 40 states, but represent less than 2 per cent of US exports to Mexico. Fresh produce items such as onions, pears, cherries, apricots, strawberries, potatoes, peas and almonds are included in the list.
Some commodities, including cherries and apricots, have a couple of months to prepare, while others, such as pears, face immediate increases.
Industry sources claim pears will see an increase of up to US$4 per box compared with the current average of US$18, according to a report by the Seattle Times.
“I think, without a doubt, this will hurt the pear guys,” Mark Powers, vice president of the Northwest Horticultural Council in Yakima, told the newspaper.
Jeff Correa, international marketing manager for the Pear Bureau Northwest, the promotional group for growers in the region, added that the impact will depend on how long the tariff lasts.
“If the feeling is this is going to be long-term, I don’t think it will shut off volume – it will reduce it,” Mr Correa said. “There will still be room to sell fruit. The market will need to adjust.”
Cherries and apricots are out of season and will not be affected unless the tariff stretches into the early summer.
Mexico claims the US ban on its trucks violates the North American Free Trade Agreement, Reuters said, but some US lawmakers and truck driver unions say Mexican trucks do not meet US safety standards – a charge Mexico denies.
Mexico’s Economy Minister said authorities are working to resolve the dispute as quickly as possible.
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