NAFTA AGRICULTURE
FACT SHEET:
Animal Fats/1
TREATMENT OF TARIFFS:
- Upon enactment of the NAFTA on January 1,
1994, the United States immediately eliminated tariffs on
animal fats imported from Mexico.
- Mexico's tariffs on animal fats were
eliminated in conjunction with the treatment of
quantitative restrictions.
TREATMENT OF QUANTITATIVE RESTRICTIONS:
- When the NAFTA went into effect, Mexico
converted its import licensing regime for animal fats
(which applied to pig and poultry fat, and lard) imported
from the United States to a transitional tariff-rate
quota (TRQ). The TRQ will be in effect for 10 years.
- For the United States, initial duty-free
access into the Mexican market was set at 35,000 metric
tons of animal fats, which grows at a 3-percent
compounded annual rate over the 10-year transition
period. For 1998, the quota is 39,393 metric tons.
- U.S. exports to Mexico in excess of the
quota are assessed a tariff (based on the
"tariffication" of Mexico's import license)
initially equal to $930 per metric ton, but not less than
282 percent. Over the first 6 years of the agreement, an
aggregate 24 percent of the over-quota tariff is being
eliminated, with the remainder to be phased out over the
rest of the 10-year transition period. The 1998
over-quota tariff is $744 per metric ton, but not less
than 225.6 percent.
U.S. Animal Fats Trade with
Mexico
Calendar
Year
|
1990
|
1991
|
1992
|
1993
|
1994
|
1995
|
1996
|
Export Value
|
17,789
|
18,788
|
16,065
|
14,571
|
19,368
|
24,216
|
27,548
|
Export Volume
|
37,296
|
41,583
|
32,311
|
29,614
|
39,010
|
46,956
|
51,769
|
Value in $1,000; volume in metric tons. U.S.
imports from Mexico are zero or very small.
1/ This discussion applies only to
animal fats subject to Mexican import licenses. Other animal fats
are discussed in " Other Livestock Products."
 |
Last modified:
Friday, November 18, 2005
|
