Mexico Tariff on U.S. Frozen Fries Remains in Place

Published online: Dec 03, 2018 Articles
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The National Potato Council (NPC) that a formal signing of the new so-called USMCA trade agreement between the US, Canada and Mexico was signed last week, but Mexico’s 20 percent tariff on U.S. frozen fries remains in place because of U.S. tariffs on steel and aluminium.

According to the NPC, President Donald Trump and Mexico President Enrique Pena-Nieto, along with Canada Prime Minister Justin Trudeau, stood together and announced their intention to ask their respective legislatures to approve the new United States-Mexico-Canada Agreement (USMCA) during the G20 meeting in Buenos Aires Friday.

Combined, the three countries represent one of the most significant trading blocs in the world. For potatoes, Canada and Mexico represent the second- and third-largest export markets for the U.S., with a combined value of over $575 million annually.

Despite the formal signing of the new agreement, Mexico’s 20 percent tariff on U.S. frozen fries remains in place.

This is largely because those tariffs were retaliation for the US imposing tariffs on steel and aluminium on a number of countries including Mexico. Those U.S. tariffs have not been eliminated, so the Mexico will continue to maintain its own tariffs for the time being.