DISPUTE
WITH MEXICO THREATENS
AG EXPORTS
Today
marks the one-year anniversary of a
trade dispute with Mexico
that threatens U.S. ag exports. The
dispute began when Congress terminated
funding for the
U.S.
Mexico
cross-border trucking pilot program, a
move that violated U.S.
commitments under the North American
Free Trade Agreement. This prompted
Mexico
to impose damaging retaliatory tariffs
on U.S. agriculture and manufacturing goods.
Although
Congress addressed the issue by removing
the prohibition on the trucking program,
the Obama administration has yet to make
progress with Mexico
on removing the tariffs. The U.S.
Chamber of Commerce estimates as many as
25,000
U.S.
jobs could be lost as a result of the
impasse.
Mexico
is the
top export destination for U.S.
beef, dairy, poultry, rice, soybean
meal, soybean oil, corn sweeteners,
cotton, apples and dry edible beans. The
U.S.
exported a record $1.4 billion in beef
and beef variety meats to Mexico
in 2008. That number backed down to $910
million in 2009. Trucks move more than
70% of the value of U.S.-Mexico trade.
It
is time for the administration to take
action before the critical relationship
with our top trading partner is further
compromised, putting agriculture exports
and imports, and American jobs, at
risk, said NCBA President Steve
Foglesong, a cattleman from Illinois.