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May 10, 2000
U.S. Apple Safeguard Quota with Mexico Filled For 2000. According to FAS/Mexico City, the Mexican Secretariat of Commerce and Industrial Development (SECOFI) announced on May 4, 2000, that Mexicos 2000 NAFTA safeguard quota for U.S. fresh apples has been filled. As such, the 20 percent pre-NAFTA duty is in effect since May 5 and will remain in effect through December 31, 2000. As agreed under NAFTA, a tariff-rate-quota for U.S. apple exports to Mexico is in effect. Once Mexican apple imports from the United States exceed this level, the pre-NAFTA tariff of 20 percent is triggered for the remainder of the calendar year. Under the agreement, the apple tonnage quota will increase by 3 percent while the tariff will be reduced by 2 percentage points per year until it is completely phased out in 2003. The 2000 U.S. apple quota was 65,672 tons with an in-quota tariff of 6 percent. U.S. apple exports to Mexico during the first 7 months of marketing year 1999/200 (July-June) totaled 78,000 tons, valued at $43 million, up 42 percent from the volume and value shipped during the same period last season. The 2001 U.S. apple quota has been established at 67,642 tons with an in-quota tariff of 4 percent. (FAS Mexico City/Sam Rosa, 720-6086)
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