Mexico Conditions WTO Tariff Reduction on Agricultural Subsidy Elimination

Mexico's negotiators in the World Trade Organization (WTO) have set a condition for the reduction of import tariffs: the elimination of subsidies granted to the agriculture export industry. This stance was articulated by Angel Villalobos, undersecretary of International Trade Negotiations at the Secretariat of Economy, who emphasized the importance of fair market access for Mexican agricultural products. The WTO's deadline for agreeing to a generalized text is July 30, which will establish the framework for nations to respect the accords. Mexico's push for subsidy elimination is critical, as it seeks to address the distortion caused by these subsidies, which put Mexican farmers at a disadvantage.

Key Takeaways:

• Mexico plans to make WTO tariff reduction conditional on the elimination of agricultural export subsidies, as stated by Angel Villalobos, undersecretary of International Trade Negotiations.
• The current average duty on agricultural imports from WTO member countries is 10.3%, while industrial products face a 17.1% levy.
• Villalobos stressed that eliminating subsidies and reducing internal support for the agriculture sector is crucial for Mexico's market access negotiations.
• The WTO set July 30 as the deadline for agreeing to a generalized text, establishing the framework for nations to respect the accords.
• This marks the second attempt to progress on this topic, following the failed talks in September at the Fifth Cabinet Meeting in Cancun.

Statistics:

• 10.3%: Average duty on agricultural imports from WTO member countries.
• 17.1%: Levy on industrial products from WTO member countries.
• 147: Number of WTO members.
• 30: July 30, the deadline for agreeing to a generalized text in the WTO negotiations.
• 2: Number of attempts made by the WTO to move forward on this topic.

Sources:

• El Economista/Corporate Mexico by Internet Securities, Inc. (via COMTEX).
• World Trade Organization (WTO).
• Secretariat of Economy (Mexico).
• Internet Securities, Inc. (2004).