Source: POLITICO'S MORNING AGRICULTURE, 6/12/18

Mexico moved on Friday to bring in tariff-free imports of pig meat from the European Union and Latin America, to offset an expected decline in U.S. pork shipments amid rising trade tensions. Mexico slapped 20 percent tariffs on U.S. pork shoulders and legs, starting July 5, in response to President Donald Trump's duties on Mexican steel and aluminum exports.

Mexico will allow 350,000 tons of pig meat from all countries to ensure that its consumers do not face shortages, the Mexican Economy Ministry confirmed. Rogelio Garza, Mexico's industry and commerce undersecretary, said Friday that the quota is expected to be quickly filled by the EU and Latin America.

"The import quota on pork meat published by [Mexico's Economy Ministry] was already assigned in full to food processors that met the requirements. These companies have signaled that they will import from countries in the European Union and Latin America," Garza posted on Twitter.

Not a complete loss for U.S. pork: U.S. pork producers will be able to vie for Mexican sales under the quota, Reuters reported. But producers are still expected to see a sharp loss in sales after sending 25 percent of all their pork shipments to Mexico last year.
EU welcomes pork sales: "If Mr. Trump does not want to do business, the EU is ready and willing to do business," EU Agriculture Commissioner Phil Hogan said, according to POLITICO Europe.

The bigger picture: The move comes after Mexico upgraded its free trade agreement with the EU in April. The new pact eliminated tariffs on various Mexican agricultural products, including orange juice, honey, fruits and vegetables.