Today marks the one-year anniversary of a trade dispute with Mexico that threatens U.S. ag exports. The dispute began when Congress terminated funding for the U.S. – Mexico cross-border trucking pilot program, a move that violated U.S. commitments under the North American Free Trade Agreement. This prompted Mexico to impose damaging retaliatory tariffs on U.S. agriculture and manufacturing goods.
Although Congress addressed the issue by removing the prohibition on the trucking program, the Obama administration has yet to make progress with Mexico on removing the tariffs. The U.S. Chamber of Commerce estimates as many as 25,000 U.S. jobs could be lost as a result of the impasse.
Mexico is the top export destination for U.S. beef, dairy, poultry, rice, soybean meal, soybean oil, corn sweeteners, cotton, apples and dry edible beans. The U.S. exported a record $1.4 billion in beef and beef variety meats to Mexico in 2008. That number backed down to $910 million in 2009. Trucks move more than 70% of the value of U.S.-Mexico trade.
“It is time for the administration to take action before the critical relationship with our top trading partner is further compromised, putting agriculture exports and imports, and American jobs, at risk,” said NCBA President Steve Foglesong, a cattleman from Illinois.
Source : Kansas Livestock Association