17 March 2017
Mexico Announces New TRQ for Certain Agricultural Products, Implements TRQs for Beef and Rice
Mexico has established a tariff-rate quota for imports of fresh or chilled potatoes, tomatoes and onions; fresh chili; fresh apples; dried chili; and crushed or ground chili classified under HTSMX 0701.90.99, 0702.00.99, 0703.10.01, 0709.60.99, 0808.10.01, 0904.21.01, 0904.21.99, 0904.22.01 and 0904.22.99. In-quota imports will benefit from duty-free treatment while out-of-quota merchandise will face most-favoured-nation duties of 10 percent, 20 percent or 75 percent, depending on the product. While the TRQ became effective on 21 January, Mexican authorities are expected to provide additional details at some point in the future on the exact TRQ amount as well as the relevant allocation procedures.
The Mexican government indicates that this TRQ is aimed at correcting an imbalance in domestic demand caused by insufficient production and growing exports. This imbalance has negatively affected domestic supply and caused price variations that have impacted consumers. In light of these developments, the government is hoping to encourage the importation of these agricultural staples by removing a key market barrier.
Separately, Mexican authorities have implemented the TRQ that was announced in June 2016 for certain livestock and beef products classified under HTSMX 0102.29.99, 0201.10.01, 0201.20.99, 0201.30.01, 0202.10.01, 0202.20.99 and 0202.30.01 and certain rice products classified under HTSMX 1006.10.01, 1006.20.01, 1006.30.01, 1006.30.99 and 1006.40.01. Up to 200,000 tonnes of subject livestock and beef products and up to 150,000 tonnes of subject rice products will benefit from duty-free treatment under these TRQs through 31 December 2017, while out-of-quota merchandise will be subject to the regular MFN rate of duty. These TRQs will be allocated directly under a first-come, first-served mechanism.