Mexico ends antidumping duties on U.S. beef

Mexico ends antidumping duties on U.S. beef    Mexico's Minister of the Economy this week has eliminated antidumping duties imposed on imports of U.S. beef for the past 10 years.
   The ministry’s resolution eliminates the duties effective April 29, 2010. U.S. beef arriving at the Mexican border starting Wednesday should be cleared into the market duty-free. Companies that have paid duties since April 29 are entitled to a refund of all duties paid.
   For years, the U.S. Department of Agriculture, National Cattlemen’s Beef Association, and U.S. Meat Export Federation have led a coalition of U.S. beef industry interests seeking eliminate the duties, which ranged from 3 cents to 29 cents per pound. The duties applied to about half of U.S. beef production, which had the effect of driving some U.S. companies from the Mexican market.
   “This is a very important development for those who advocate free trade, as this decision very much upholds the spirit and intent of NAFTA,” said USMEF Chairman Jim Peterson, a rancher from Buffalo, Mont., in a statement.
   Peterson noted that while Mexico is still the leading destination for U.S. beef exports, it is the only major market that is trailing last year’s results. The U.S. Trade Representative’s National Trade Estimate Report on Foreign Trade Barriers has estimated that these duties have caused losses of $100 million to $500 million annually because of reduced shipments and altered trade flows. Peterson is confident that elimination of the duties will help the market’s performance.
   “This levels the playing field for all U.S. products entering Mexico and should certainly help us regain momentum in our No. 1 export market,” Peterson said. “The foreign markets are very critical to cattle producers’ bottom line right now, so this comes as very welcome news. Both countries will benefit substantially from today’s action.”
   The antidumping duties are scheduled to sunset every five years, but could have been continued this year upon a request for review by an interested party. Such a request was filed by the association of Mexican cattle producers (Confederaci'n Nacional de Ganaderos, or CNOG), but the organization later withdrew it.
   “In recent years, the interested parties in Mexico have concluded that the duties offer them no advantage,” said USMEF Regional Director Chad Russell. “Even before the withdrawal motion by CNOG, other Mexican industry associations had remained neutral or actually favored eliminating the duties. This really shows how far the U.S. industry has come in developing a strong trade relationship with Mexico.” ' Chris Gillis