Tuesday, March 24, 2009

Mexico Begins Retaliatory Tariffs on U.S. Exports

Mexico on Thursday began imposing tariffs on a range of U.S. exports ranging from grapes and Christmas trees to shampoo and cordless phones in retaliation for the decision by the U.S. government to end a pilot program that allowed Mexican truckers to operate in the United States.

The trucking ban was part of the omnibus spending bill signed into law earlier this month by President Obama.

Obama is planning a visit to Mexico on April 16-17, following a visit scheduled for next week by Secretary of State Hillary Clinton to Mexico City and Monterrey.

The National Association of Manufacturers on Thursday expressed deep concern that the Mexican tariffs would harm its members and employees by jeopardizing export sales. It said 17,000 manufacturing jobs were at risk.

“This is the worst possible time to send a signal to our closest trading partners that the United States does not take its commitments seriously,” it said.

The trade association said the cross-border truck program, under strong monitoring from the Department of Transportation, indicated that Mexican motor carriers can operate safely beyond the restricted commercial zone along the border.

Law firm Sandler, Travis & Rosenberg gave this partial list of impacted products and the new tariff amounts which range from 10 percent to 45 percent:
• Christmas trees, 20 percent.
• Onions, cabbage, pasta, 10 percent.
• Almonds, dates, peanuts, 20 percent.
• Fresh grapes, 45 percent.
• Fresh pears, apricots, cherries and strawberries, 20 percent.
• Frozen potatoes and peas, 20 percent.
• Fruit and vegetable juices, 20 percent.
• Wine and other alcoholic beverages, 20 percent.
• Health and beauty items, 15 percent.
• Tableware, kitchenware and glassware, 20 percent.
• Various printed matter, 20 percent.
• Manmade fiber yarn, 15 percent.
• Carpets, 20 percent.
• Jewelry, 20 percent.
• Home appliances, 15 percent to 20 percent.
• Cordless phones, 20 percent.
• Sunglasses, 15 percent.
• Pens and pencils, 20 percent.

To read more, visit the National Association of Manufacturers at http://www.nam.org