NAFTA Cross-Border Trucking Retaliation by Mexico

Pacific Northwest apple, pear, apricot and cherry growers are caught in a trade dispute not of their making.  Language in Section 136 of the Omnibus Appropriations Act, 2009 eliminated the U.S.-Mexico cross-border truck safety inspection program and, as a result, on March 19, 2009 Mexico instituted retaliatory tariffs on U.S. pears, cherries and apricots.

The Northwest Horticultural Council is requesting the active involvement of the Pacific Northwest congressional delegation with the Obama Administration to bring about a quick solution that will result in the removal of the tariffs currently punishing Idaho, Oregon and Washington fruit growers.

The reprisal by Mexico is a calculated move threatened since 2001 when Mexico prevailed in its NAFTA cross-border trucking services dispute against the United States.  The predictable action has caused significant disruption in cross-border trade in fresh pears, cherries and apricots.  The 20 percent tariff on these three fruits has cost Pacific Northwest growers an estimated $25 million. 

Mexico is the top export market for our apples and pears.  Annual sales of fresh apples can range from $150 million to $180 million and annual pear sales are in the $50 to $60 million range.  Roughly 10 percent of the Washington state apple crop, 13 percent of the Pacific Northwest pear crop and 10 percent of the apricot crop is sold in Mexico.  Mexico is a small yet rapidly growing market for cherries with sales volume increasing over 400 percent from 2005 to 2009.

The Northwest Horticultural Council supports the Alliance to Keep U.S. Jobs (http://www.keepusjobs.org/), a national coalition formed to work toward resolving this unnecessary trade dispute with Mexico.

8/26/10

    Northwest Horticultural Council
    105 South 18th Street, Suite 105
    Yakima, Washington 98901, USA
    Voice: (509) 453-3193, Fax: (509) 457-7615

    E-mail general@nwhort.org