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Mexico Prepared for NAFTA Tariff Elimination on Corn, Beans, and Powdered Milk

Strategic Insights

— 1 min read

As Mexico's Secretary of Agriculture, Javier Usabiaga, assured the Chamber of Senators, the country is ready to face the potential impacts of the North American Free Trade Agreement (NAFTA) tariff eliminations on corn, beans, and powdered milk. These sensitive products have been protected by a 15-year transition period, set to expire, allowing Mexico to prepare for the shift. The elimination of import tariffs on these products is scheduled to take effect after 11 years since the signing of the trade agreement.

Key Takeaways:

  • Mexico has policies in place for 2008 to protect and defend producers from increased competition due to tariff elimination.
  • The country requested a 15-year period to prepare before reducing duty to zero on corn, beans, and powdered milk in foreign trade with the US and Canada.
  • Despite concerns of catastrophic policies, imports have dropped while exports have increased since the beginning of 2003.
  • The elimination of import tariffs is part of the NAFTA agreement, which has been in place for 11 years.
  • Mexico's agriculture sector has shown resilience, with a 15-year transition period to adjust to new market conditions.
  • The country's agricultural policies aim to counterbalance the potential negative effects of tariff elimination.
  • The elimination of tariffs will lead to increased competition and potentially impact domestic producers.
  • Mexico's ability to adapt and adjust its agricultural policies is crucial to mitigate potential effects on the sector.

Statistics:

  • 15 years: The transition period granted to Mexico to prepare for the elimination of tariffs on sensitive products.
  • 11 years: The duration since the signing of the NAFTA agreement, which includes the tariff elimination provision.
  • 2008: The year in which Mexico's policies for protecting and defending producers will be fully implemented.
  • 0: The zero duty rate that Mexico has requested for corn, beans, and powdered milk in foreign trade with the US and Canada.
  • Increased: Exports of Mexico's agricultural products since the beginning of 2003.
  • Dropped: Imports of Mexico's agricultural products since the beginning of 2003.

Sources:

  • El Economista/Corporate Mexico by Internet Securities, Inc. via COMTEX
  • Chamber of Senators
  • NAFTA agreement

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