Mexico to remove costly apple tariffs

YAKIMA, Wash. — Northwest fruit industry representatives are applauding an agreement that will reduce and ultimately eliminate trade-dampening tariffs by Mexico that have cost growers millions of dollars over the last three years.

The deal announced today will resolve a long-standing dispute over Mexican trucks being allowed to make deliveries inside the United States.

The dispute prompted Mexico to impose 20 percent tariffs on a variety of products, including apples, cherries, pears and apricots.

Threats remain to the agreement. The Teamsters Union vowed to challenge the program in Congress.

Industry estimates suggest losses suffered by Washington apple growers alone exceed $40 million per year in the industry’s largest single export market.

"This allows for more movement of apples at better pricing for growers and consumers," said Mark Powers, a vice president of the Yakima-based Northwest Horticultural Council.

The council represents Northwest fruit growers on trade and regulatory issues.

The agreement calls for the tariffs to be reduced by half within 10 days and the remainder to be eliminated when the first Mexican carrier receives approval to cross the border, expected to occur in about two months.

Officials said, however, Mexico has committed to removing the first half the tariff by Friday of this week.

The agreements end a dispute that began in 2009 when Congress refused to fund a pilot program for cross-border truck traffic that was part of the North American Free Trade Agreement.

In response to the end of the program, Mexico imposed retaliatory tariffs on a host of American agriculture products.

B.J. Thurlby, president of the Washington State Fruit Commission, said the agreement should help marketing of apples, pears and soft fruits.

"This will add to the Mexican retail and importer interest to bring cherries in," he said. "It’s a great thing."

The agreement requires Mexican trucking firms to comply with U.S. truck safety standards and submit to electronic monitoring of trucks on American roads.

The U.S. also will check the safety records of drivers, require drug testing and knowledge of English and traffic signs.

-- David Lester