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NAFTA AGRICULTURE
FACT SHEET:
Fresh, Dry Onions
TREATMENT OF TARIFFS:
Upon enactment of the NAFTA on January 1, 1994, two new U.S. tariff lines were created for onions imported from Mexico.
Onions imported from Mexico are covered by a special agricultural safeguard, which is designed as a seasonal tariff-rate quota. Under the safeguard, a certain quantity of imports enters at the NAFTA preferential tariff rate, while any amount in excess is assessed the lower of the current MFN rate or the MFN rate in place when the quantity is reached.
This quota quantity grows at a compounded 3-percent annual rate over the 10-year transition period. The quantity is 147,104 metric tons for Jan. 1-Apr. 30, 1998.
Mexico matched the U.S. tariff line changes and specific duties. The new specific duties are being phased out over the 10-year transition period. The duty assessed on imports from the United States cannot exceed Mexico's 10-percent ad valorem MFN duty. Mexico does not apply the safeguard on onions.
The U.S. phaseout schedule and safeguard quotas for onions are as follows:
Season Base tariff Phaseout Safeguard base 1/
Jan. 1-Apr. 30 3.9 cents/kg 10 years 130,700 mt
May 1-Dec. 31 3.9 cents/kg 10 years N/A
1/ Will increase 3 percent annually, compounded. MFN rates are currently below the base rates. N/A = not applicable.
TREATMENT OF QUANTITATIVE RESTRICTIONS:
There are no quantitative restrictions affecting trade in onions.
U.S. Onion Trade with Mexico
Calendar Year |
1990 |
1991 |
1992 |
1993 |
1994 |
1995 |
1996 |
Export Value |
7,327 |
6,446 |
11,920 |
6,811 |
8,366 |
1,753 |
6,067 |
Export Volume |
25,038 |
18,981 |
35,588 |
19,361 |
27,012 |
4,074 |
15,127 |
Import Value |
67,174 |
89,699 |
93,871 |
90,385 |
115,786 |
116,414 |
126,238 |
Import Volume |
143,261 |
186,444 |
152,506 |
192,699 |
176,743 |
182,202 |
224,394 |
Value in $1,000; volume in metric tons.
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