Mexico tariffs on ag products may end

YAKIMA -- Trade-inhibiting tariffs that have cost producers of Washington apples, pears, cherries and other products millions of dollars would end early this summer under an agreement announced Thursday by the U.S. and Mexican governments.

The agreement would resolve a two-year controversy over cross-border truck traffic that prompted Mexico to impose 20 percent tariffs on American products beginning in March 2009.

"This is a very positive development. The process is going in the right direction," said Mark Powers, a vice president of the Northwest Horticultural Council of Yakima. "Hopefully, with goodwill and hard work, we will see the tariffs come off in early summer."

The council works on trade and regulatory issues on behalf of tree-fruit growers in the Northwest states.

Mexico slapped on the tariffs shortly after the U.S. Congress refused to fund a program under the North American Free Trade Agreement allowing Mexican trucks to make deliveries inside the United States.

The proposed agreement, which will be subject to a public comment period of up to 45 days, would phase out the tariffs.

Once a final agreement is signed, Mexico would reduce the tariffs by 50 percent while the rest would come off once the trucking program begins.

Mexican trucking firms would have to apply for approval to move goods into the United States. Their driving records and vehicle safety would then be checked.

Members of the Washington congressional delegation applauded the announcement but criticized continuation of the tariffs.

Sen. Patty Murray complained the tariffs should be removed immediately.

"By maintaining the tariffs on Washington state products like potatoes and apples, Mexico is continuing to punish farmers and growers in my home state who have absolutely nothing to do with this dispute," the Democratic senator said in a news release.

Fourth District Rep. Doc Hastings, R-Pasco, a critic of the Obama administration for the slow pace in resolving the dispute, called for the negotiations to be completed and the tariffs eliminated immediately.

The tariffs, added to the cost of a box of apples at the border, have dampened tree-fruit sales to Mexico, this state's largest export market for apples and pears.

The negative effect can be seen by comparing export sales growth to Mexico and worldwide shipments. The Yakima Valley Growers-Shippers Association reported a 7 percent increase in apples sales to Mexico through the end of February. Apple exports worldwide grew by 14 percent.

B.J. Thurlby, president of the Washington State Fruit Commission, said the tariffs cut cherry exports to Mexico last year by more than 50 percent to about 50,000 boxes.

* David Lester can be reached at 509-577-7674 or dlester@yakimaherald.com.