USMCA does not address recently implemented retaliatory tariffs

While the United States-Mexico-Canada Agreement (USMCA) announced yesterday preserved the zero tariff aspects of the 25-year-old North American Free Trade Agreement, the new pact does not address recently implemented retaliatory tariffs on U.S. pork and beef, according to the U.S. Meat Export Federation.“While [USMCA] is very positive news for the U.S. red meat industry, it is important to note that the retaliatory duties imposed by Mexico on U.S. pork and by Canada on U.S. prepared/cooked beef products remain in place,” USMEF President and CEO Dan Halstrom told Meatingplace in an email.These duties were imposed in response to tariffs on imports of steel and aluminum from Mexico and Canada the White House imposed in May.The duties Mexico implemented in June included a 10 percent tariff on chilled/frozen pork until July 5, after which they increased to 20 percent. Mexico created a new commodity code for pork-only sausages and applied a 15 percent duty to those products. It also applied a 20 percent duty to some cooked ham and shoulder products.In June, USMEF issued a report predicting Mexico’s tariffs on U.S. pork could cost the industry hundreds of millions of dollars.  On July 1, Canada implemented retaliatory tariffs on more than $12.6 billion worth of U.S. products, including about $170 million worth of U.S. beef products.“USMEF hopes to see this issue resolved soon, so that all U.S. red meat exports will once again have duty-free access to Mexico and Canada,” Halstrom said.