U.S. Works To Secure Poultry Exports To Mexico
WASHINGTON, D.C.—The
United States trade representa
tives have successfully worked to
ensure that U.S. poultry exports
will continue to be exported to
Mexico with preferential access,
forestalling possible Mexican ac
tion that could have resulted in
significant trade disruption.
On January 1, under the North
American Free Trade Agreement
(NAFTA), Mexican tariffs on
U.S. poultry exports fell to zero.
However, under NAFTA, Mexico
could have taken action to im
pose a “safeguard” or emergency
import tariff of up to 240 percent
on U.S. poultry exports, which is
the tariff that countries without a
preferential arrangement with
Mexico pay. Instead, Mexico will
allow 50,000 metric tons of U.S.
chicken leg quarters into Mexico
duty-free over the next six
months and will impose a tempo
rary, or provisional, safeguard
tariff of 98.8 percent on imports
of chicken leg quarters above that
level. All other U.S. poultry ex
ports will continue to enter Mexi
co duty free.
“By working with Mexico, in
consultation with the U.S. poul
try industry, we’ve been able to
ensure that U.S. poultry will con
tinue to flow to Mexico at levels
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comparable to the last few years,
while we continue to work on
larger issues related to NAFTA’s
implementation,” said U.S.
Trade Representative Robert B.
Zoellick. “Under NAFTA, Mexi
co could have imposed a safe
guard tariff to protect its industry
that could have seriously dis
rupted our poultry trade. Be
cause of factors unique to the
poultry industry, we preferred, in
this case, to work on positive and
practical solutions to keep poul
try exports flowing. I’m pleased
that the U.S. poultry industry
supports our efforts and that
Mexican consumers will have
continued access to high-quality
U.S. poultry.”
“We have been working hard
to keep the Mexican market open
for U.S. poultry exports in the
face of a number of recent chal
lenges,” said Agriculture Secre
tary Ann M. Veneman. “This
provisional safeguard will help to
preserve preferential access for
U.S. poultry in our third largest
market. While the safeguard is in
place we will continue to work
with the Mexican Government
and the poultry industry to en
sure long-term access for U.S. ex
ports.”
The provisional measure will
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take the form of a tariff-rate
quota (TRQ). The first 50,000
metric tons of chicken leg quar
ters exported in the next six
months approximately the same
rate at which the United States
exported chicken leg quarters to
Mexico in 2001 will enter Mexico
duty free.
Additional U.S. exports of
chicken leg quarters in this six
month period will be subject to a
98.8 percent tariff, which was the
2001 tariff level. Mexico’s most
favored-nation (MFN) tariff rate
for U.S. chicken leg quarters is
240 percent. Citing “critical cir
cumstances,” Mexico has decided
to impose the provisional mea
sure for six months, effective im
mediately, while its full safeguard
investigation continues. The
United States will continue to
work with Mexico on a longer
term measure, which under
NAFTA rules would require
Mexico to provide offsetting
trade compensation.
The U.S. is fully committed to
the effective implementation of
NAFTA because of the benefits it
provides to families, farmers,
workers, businesses, and consum
ers on both sides of the border.
The issue of the NAFTA poultry
tariffs and the Mexican safeguard
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is a novel and complicated situa
tion, involving close cooperation
between the U.S. government
with the U.S. poultry industry.
Therefore, it should be viewed as
a unique approach designed to
ensure that trade flows continue
at high levels, and not as any new
across-the-board approach to im
plementing NAFTA.
Unrelated to the safeguard ac
Idaho Cattleman Becomes
NCBA President
NASHVILLE, Tenn. Eric
Davis, a beef producer from Bru
neau, Idaho, has become the new
president of the National Cattle
men’s Beef Association (NCBA).
Davis took the position Satur
day at the NCBA membership
meeting during the 2003 Cattle
Industry Convention and Trade
Show in Nashville, Tenn.
For the past year, Davis has
served as NCBA president-elect,
and was NCBA’s vice president
in 2001.
Davis is past president of both
the Owyhee Cattlemen’s Associa
tion and the Idaho Cattle Associ
ation, where he also served as
chairman of the Beef Quality As
surance Committee. He was also
chairman of the Idaho Beef
Council.
A graduate of the University of
Idaho with a degree in Agricul
ture, Davis is president of the
family-owned Bruneau Cattle
Co., which includes a cow/calf
operation near Bruneau. The
family finishes its own cattle,
Angus Foundation Increases
Scholarships For Youth In 2003
ST. JOSEPH, Mo. The Angus Foundation will increase the
amount of scholarships it awards in 2003. The Angus Foundation
Board of Directors voted unanimously to increase the amount of
scholarship monies awarded from $20,000 to $25,000, and increase the
number of scholarships by three.
The top two scholarship recipients will receive $3,500. Eighteen re
cipients will receive $l,OOO scholarships.
“Each year we have so many deserving applicants apply for the
Angus Foundation scholarships,” says James Fisher, director of activ
ities and junior activities for the American Angus Association.
“With the decision of the Angus Foundation board, we will be able
to award more of these youth scholarships to help them with their col
lege education.”
Angus Foundation scholarships are awarded at the National Junior
Angus Show each summer. An application is due to the junior activi
ties department with a postmark date of May 15. A committee of
qualified individuals will decide on the scholarship recipients.
For more information about the Foundation or to obtain a schol
arship application, log onto www.angusfoundation.org or call the jun
ior activities department at (816) 383-5100.
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tion taken by the Mexican Minis
try of Economy, the Mexican
Ministry of Agriculture (SAGAR
PA) maintains certain restrictions
on imports of U.S. poultry due to
animal health requirements. On
January 21, SAGARPA an
nounced that poultry from Cali
fornia and Nevada was banned
due to an outbreak of Exotic
Newcastles Disease.
does custom feeding, and has irri
gated grounds that grow mostly
hay and com silage. He and his
wife Pam have a son and a
daughter.
Jan Lyons, a beef producer
from Manhattan, Kan., is the
new president-elect for NCBA;
she was formerly the organiza
tion’s vice president. Jim McA
dams of Lubbock, Texas, for
merly vice president of NCBA’s
Policy Division, was elected
NCBA vice president.
Elected as chairman of the
NCBA Federation Division is
Bob Schmidt of Greenback,
Tenn.; Bob Rolston of Denver,
Colo., is vice chairman. Joe
Tugaw of Twin Falls, Idaho was
elected chairman of NCSA’s Pol
icy Division, with Mike Byme of
Tulelake, California serving as
vice chairman.
Ernie Reeves, Virginia, was
elected to the NCBA Executive
Committee to represent his re
gion of the country in the Policy
Division.
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