Mexico Levies 20% Retaliatory Tariffs on Apricots, Cherries and Pears March 18, 2009 BACKGROUND:  On March 11, 2009 President Obama signed into law the appropriations bill for fiscal year 2009, which included language that ends a pilot program allowing up to 100 trucks from Mexico to operate in the U.S.  Under the terms of the North American Free Trade Agreement (NAFTA), enacted in 1994, Mexican carriers were authorized to deliver their cargo anywhere in the U.S. as of 2000.  When the U.S. failed to allow such access, Mexico pursued and in 2001 won a trade dispute case against the U.S. that provides Mexico the right to retaliate against as much as $2 billion of U.S. products per year unless the U.S. complied with its NAFTA obligations.            SITUATION:  The President of Mexico has issued a decree that Mexico, effective March 19, will retaliate against the U.S. by removing NAFTA benefits on 90 products imported from the U.S.  These include apricots, cherries and pears.  The 20 percent pre-NAFTA tariff rate on these three products will be assessed starting tomorrow. The NHC is working with other affected U.S. commodity groups and members of Congress on this trade dispute. CONTACT:  If you have any questions or comments contact Mark Powers or Christian Schlect  at 509/453-3193. 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