Mexico Creating Trade Barriers, Say Cattlemen

May 10, 2000

The Mexican government is abusing a recent antidumping decision to create unjustifiable trade barriers that violate international trade rules, the National Cattlemen's Beef Association says. NCBA, along with other agriculture trade groups, sent letters to government officials Tuesday urging immediate action regarding these trade blocks. The dumping case began after Mexican beef producers claimed the U.S. cattle industry dumped beef in the Mexican market from June to December 1997.

On April 28, the Mexican government issued its final ruling, which includes higher duties on imports of U.S. beef not certified USDA prime, choice or select, and on beef from animals slaughtered more than 30 days before an export certificate is issued. NCBA is reviewing recourse options under Mexican law and international trade rules.

"If allowed to stand, these actions by Mexico establish a very dangerous trade policy precedent that will be noted by protectionist interests on both sides of the border and around the world," said Dana Hauck, a cattle producer from Delphos, KS, and chairman of the Beef Industry International Markets Committee.

U.S. beef exported to Mexico will be subject to these mandatory grading and shelf-life requirements effective May 29, yet no comparable requirements apply to Mexican-produced beef or beef imported from other countries, the letter stated.

The new requirements violate U.S. rights under World Trade Organization (WTO) rules and North American Free Trade Agreement (NAFTA) provisions, said NCBA. There is no scientific basis for applying higher duties to beef from carcasses more than 30 days old. USDA has purchased more than 120 million pounds of frozen ground beef and ground beef patties to use in school lunch programs, the letter stated. Further, much of beef consumed in the United States and exported is not graded.

"Some of the proposed trading rules can create an unfair trade environment that reverses the progress we've made in producing a fair trading system," Hauck said. "There is no basis for discriminating between beef that is USDA graded and beef that is not."

Throughout the ongoing investigation, however, there has been no evidence to support the Mexican government's position that beef was dumped in the Mexican market or that there was harm to the Mexican cattle industry, Hauck said. Duties now are as high as 36 cents per pound and vary depending on exporter, product and grade. Products that receive lower tariffs have to go through a complex certification process.

"The Mexican government should immediately rescind this clearly illegal and unjustifiable measure," the letter stated. "If it does not, the administration should promptly challenge provisions under the (WTO) Uruguay Round Agreement or NAFTA."

To view the letter, go to the Internet address http://hill.beef.org/fs/macl.htm.