The Produce Marketing Association is praising the signing of agreements that resolve a two-year dispute over cross-border trucking services between the United States and Mexico.
This action, supported by PMA in comments provided to the Federal Motor Carrier Safety Administration in May, will help increase trade for fresh fruits and vegetables by removing 50 percent of the tariffs imposed on U.S. produce and other products shipped to Mexico. Set to go in effect within 10 days, Mexico will also suspend the remainder of the tariffs within five days of the U.S. granting operating authority to the first Mexican trucking company.
“This dispute has had a profound impact on the fresh produce industry in particular,” said Bryan Silbermann, PMA president and CEO. “Mexico is a critical trading partner for our members and the resolution of this issue not only allows for greater export opportunities, but also impacts job creation and demand for produce in both countries.”
These tariffs on more than an estimated $900 million of U.S. agricultural products created an immediate drop in sales of many produce commodities to the Mexican market. Mexico levied the tariffs in retaliation for the United States terminating a pilot trucking program.
PMA strongly believes this week’s action will immediately help the produce industry meet the needs of growing demand in Mexico. PMA is urging Congress and the Obama administration to finalize the resolution of this dispute and work to ensure its implementation.
Founded in 1949, PMA is the leading trade association representing nearly 3,000 companies from every segment of the global produce and floral supply chain.