Source:  Tom Johnston, MEATINGPLACE.COM, 8/17/10

U.S. pork exporters are decrying an expected move by the Mexican government to lump pork in with many other U.S. products on which it is imposing tariffs in retaliation for a cross-border trucking dispute.

At the same time they said they are frustrated that Washington has not renewed a pilot program under the North American Free Trade Agreement that allowed a limited number of Mexican trucks to haul freight on American highways.

“Mexico’s retaliation against U.S. pork will have negative economic consequences for America’s pork producers,” National Pork Producers Council President Sam Carney said in a news release. “We are extremely disappointed that our top volume export market has taken this action, but we’re more disappointed that the United States is not living up to its trade obligations.”

U.S. Trade Representative Ron Kirk issued a statement also expressing Washington’s disappointment with Mexico’s decision.

“Mexico is an important U.S. export market and President Obama understands the economic pain that these tariffs cause for American farmers, companies and workers,” he said.  “Following President Obama’s direction, Department of Transportation Secretary Ray LaHood and I have worked with other agencies and stakeholders in Congress seeking to resolve this issue in a way that addresses safety concerns and upholds our trade obligations.  We are committed to continuing to work with Members of Congress and our counterparts in Mexico to resolve the dispute and end these duties.”

In February 2001, a NAFTA dispute-settlement panel ruled that excluding Mexican trucks violated U.S. obligations under the trade pact. The ruling allowed Mexico to retaliate against U.S. products, which the country did in March 2009 after Congress failed to renew the Cross-Border Trucking Pilot Program. The U.S. Department of Transportation initiated the program in September 2007 in an effort to comply with the NAFTA trucking provision, originally slated to take effect in December 1995.

Mexico initially applied a first round of tariffs on 89 U.S. products. On Monday Mexico indicated it would add another 10 products and reduce or eliminate duties on several others. USTR said Mexican officials haven’t provided a list of those products but expect to do so later this week.

Mexico bought $762 million worth of U.S. pork last year, according to NPPC.

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