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NAFTA AGRICULTURE
FACT SHEET:
Processed Potatoes
TREATMENT OF TARIFFS:
For frozen potatoes, dried potatoes, frozen french fries, and potato chips, the U.S. duties on Mexican imports were either phased out immediately or over 5 years. All of these products now enter duty-free.
Mexican duties on these same products are being phased out over 10 years. In addition, Mexican imports from the U.S. are covered by a special agricultural safeguard. 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 transition period. The quantities for 1998 are: frozen potatoes -- 2,026 mt; dried potatoes -- 225 mt; frozen french fries -- 3,489 mt; and other prepared potatoes -- 6,078 mt.
Mexico also established tariff-rate quotas for Canadian processed potatoes.
The base phaseout schedules and safeguard quotas are as follows:
Item Base tariff Phaseout Safeguard base
U.S. imports from Mexico
Potatoes, frozen 17.5% 5 years None
Potatoes, dried 2.9 cents/kg 5 years None
French fries, frozen (yellow) 10% Immediately (GSP) None
French fries, frozen (other) 10% 5 years None
Potato chips 10% Immediately (GSP) None
Other prepared potatoes 10% Immediately (GSP) None
Mexican imports from U.S.
Potatoes, frozen 15% 10 years 1,800 mt 1/
Potatoes, dried 20% 10 years 200 mt 1/
French fries, frozen 20% 10 years 3,100 mt 1/
Potato chips 20% 10 years 5,400 mt 1/
Mexican imports from Canada
Potatoes, frozen 15% 10 years 1,000 mt 2/
Potatoes, dried 20% 10 years 1,000 mt 2/
French fries, frozen 20% 10 years 1,000 mt 3/
Potato chips 20% 10 years 1,000 mt 3/
1/ Increases by 3 percent annually, compounded. 2/ Combined quota of 1,000 metric tons for frozen and dried. Increases by 3 percent annually, compounded. 3/ Combined quota of 1,000 metric tons for frozen french fries and potato chips. Increases by 3 percent annually, compounded.
TREATMENT OF QUANTITATIVE RESTRICTIONS:
There are no quantitative restrictions affecting trade in processed potatoes.
U.S. Processed Potato Trade with Mexico
Potatoes, Frozen
Calendar Year |
1990 |
1991 |
1992 |
1993 |
1994 |
1995 |
1996 |
Export Value |
242 |
617 |
1,711 |
3,020 |
3,030 |
2,664 |
2,691 |
Export Volume |
349 |
810 |
3,323 |
5,666 |
5,997 |
5,557 |
5,904 |
Import Value |
0 |
0 |
0 |
38 |
0 |
7 |
0 |
Import Volume |
0 |
0 |
0 |
33 |
0 |
1 |
0 |
Value in $1,000; volume in metric tons.
Potato Chips
Calendar Year |
1990 |
1991 |
1992 |
1993 |
1994 |
1995 |
1996 |
Export Value |
3,084 |
867 |
4,538 |
5,626 |
15,332 |
200 |
5,430 |
Export Volume |
4,903 |
893 |
3,084 |
3,619 |
10,743 |
121 |
4,718 |
Import Value |
4,846 |
4,779 |
5,778 |
4,112 |
2,194 |
0 |
0 |
Import Volume |
1,694 |
1,630 |
1,860 |
928 |
448 |
0 |
0 |
Value in $1,000; volume in metric tons.
Frozen French Fries
Calendar Year |
1990 |
1991 |
1992 |
1993 |
1994 |
1995 |
1996 |
Export Value |
1,500 |
2,736 |
4,981 |
6,662 |
9,861 |
5,624 |
8,621 |
Export Volume |
2,075 |
3,509 |
6,970 |
9,255 |
13,609 |
8,115 |
12,148 |
*Value in $1,000; volume in metric tons. U.S. imports from Mexico are zero or very small.
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