U.S., Mexico Talk Hog Imports

July 25, 2000

The United States and Mexico are trying to resolve a dispute over Mexico’s claim that U.S. hogs are being dumped on the Mexican market, justifying Mexico to levy antidumping duties. The two sides have 30 days from July 10 to resolve their differences. If that’s not successful, the United States can request a World Trade Organization dispute settlement panel to rule.

The Mexican government justified its February, 1999 decision on the grounds that its hog farmers were being damaged due to an increase of U.S. hog imports at below market prices. However, the United States claims the investigation was not carried out according to WTO rules.

In addition, the United States seeks talks with Mexico regarding other barriers to cross-border trade in hogs, including a ban on U.S. live hogs weighing more than 220 pounds as well as sanitary and technical regulations that are only applied to imported swine.

On Feb. 1, 1999, following an investigation by the Secretary of Commerce and Industrial Development (SECOFI), Mexico imposed compensatory duties on live hog imports that entered the country. Duties of 15.9 cents per pound live weight became permanent in October 1999.

The U.S. decision to initiate proceedings against Mexico was made at the request of the National Pork Producers Council. NPPC maintains that the duties and other protectionist measures initiated by Mexican authorities were in response to political pressure exerted by Mexican pork producers. NPPC has long argued that the number of live hogs being exported from the U.S. during the investigation period was insufficient to cause any actual injury to Mexican producers.