NAFTA AGRICULTURE FACT SHEET:
Processed Vegetables

TREATMENT OF TARIFFS:

• U.S. tariffs on many processed vegetables imported from Mexico are being phased out over 10 years. Some major items include frozen broccoli, frozen cauliflower, and tomato paste.
• For some of these products, Mexico was granted an immediate reduction in the U.S. tariff, which is being phased out from that lower rate.
• For dried onions (whole, powdered, or flour) and dried garlic imported from Mexico, the 35-percent U.S. tariffs is being phased out over 15 years.
• For some of these same products, such as tomato paste, Mexico lowered its duties of 15 to 20 percent to match the U.S. duties.

The U.S. phaseout schedule is as follows (U.S. and Mexican duties are all on an ad valorem basis):

Item                  Base tariff	New base tariff	       Phaseout 

Broccoli, frozen	17.5%	               15%	        10 years 

Cauliflower, frozen	17.5%	               15%	        10 years 

Tomato paste	        13.6%	               11.5%	        10 years

Dried onions, powder	35%	               No change	15 years

Dried onions, whole	35%	               No change	15 years

Dried garlic	        35%	               No change	15 years

TREATMENT OF QUANTITATIVE RESTRICTIONS:

• There are no quantitative restrictions affecting trade in these processed vegetables.

U.S. Processed Vegetable Trade with Mexico

Cauliflower, Frozen

Value in $1,000; volume in metric tons. U.S. exports to Mexico are zero or very small.

Tomato Paste

Value in $1,000; volume in metric tons.

Dried Onions

Value in $1,000; volume in kilograms.

Dried Garlic

Value in $1,000; volume in kilograms.

Last modified: Friday, November 18, 2005