U.S. Growers Hardest Hit in Trucking Dispute
Beginning in 1994, the North American Free Trade Agreement (NAFTA), led to the elimination of import taxes on U.S. products entering Mexico. Agricultural products deemed sensitive were some of the last to enjoy the benefits of tariff elimination, with final tariff phase-outs lasting more than a decade. Consequently, U.S. farmers have only recently been able to enjoy the full benefits of open access to Mexico’s markets, but already their market share is threatened.
The U.S. failure to fulfill its NAFTA commitment to Mexico on cross-border trucking has led Mexico to withdraw concessions of its own, resulting in a “snap-back” to pre-NAFTA tariff rates on key U.S. exports including many agricultural products.
Mexico’s withdrawal of NAFTA tariff concessions impacts 36 tariff lines for agricultural products including: Christmas trees, lettuce, almonds, grapes, pears, apricots, potatoes, fruit juices, milk products, wine and pet food. Tariffs ranging from 10 to 45 percent make the targeted farm exports uncompetitive, resulting in lower export volumes, reduced farm income and a loss of jobs on America’s family farms and in the agriculture processing and distribution sectors that serve those farms. Market share is being lost that may never be regained.
Consider potatoes: U.S. exports of frozen potato products to Mexico have fallen by over 50 per cent since the imposition of the tariffs. Canadians have grabbed those sales. Family farmers in Washington, Idaho, Oregon, North Dakota, Minnesota and Maine are paying the price and will plant and harvest fewer acres of potatoes this year as a direct result of this trade dispute. Other agriculture commodities on the retaliation list have seen similarly dramatic declines, and additional sectors, such as dairy and pork, see themselves in the crosshairs.
The result: Across the U.S. agriculture sector businesses large and small are cutting production hours, closing entire lines or selling perishable agriculture products for a severe loss.
It’s past time to resolve the trucking dispute.
The above was sent to all Members of Congress by The Alliance to Keep U.S. Jobs on May 19. I am not the sole author - several individuals contributed substantially to its content.
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