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Northwest Iowa Dairy Outlooks

A local discussion of current science and issues concerning dairying in northwest iowa

U.S. and Mexican officials signed agreements yesterday that apparently have resolved the long-standing dispute over Mexican trucks operating within the U.S. The agreement means that Mexico will remove half of the retaliatory tariffs it had imposed last year with 10 days. The remainderof the tariffs would be removed, according to the Department of Transportation, within “a few months.” U.S. pork
was one of the items on that retaliatory tariff list.

Mexico is the second largest destination for U.S. pork muscle cuts, and the largest destination for U.S. pork variety meats. When added together, it is by far the largest destination for total U.S. pork products and stands second in terms of export value.

Under the agreements, Mexican trucks operating in the U.S. must comply with U.S. federal safety standards and must include electronic
monitoring equipment to measure compliance with U.S. hours-of-service regulations as well as other safety measures. Mexico will have reciprocal authority over U.S. carriers engaged in cross-border operations.

The main impact of the tariffs was to make Canadian pork products very competitive with U.S. products in Mexico.

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