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BRIEF: Trade barriers are set to fall today on U.S. agricultural exports to Mexico... That could mean a new trade battle over chicken production and sales.
Mexican tariffs on chicken drop[ed] from 49 percent to zero as mandated by the North American Free Trade Agreement. That's the biggest single tariff drop out of over 80 agricultural items affected today. Mexican farmers have staged numerous protests and threatened to shut down tollbooths in Mexico if certain NAFTA policies were not re-negotiated. As well, Mexican union and political officials have talked about some form of economic retaliation. Last year, U.S. chicken producers were dealt a major blow when Russia banned U.S. chicken imports due to salmonella health risks. The ban lasted five months. According to a report by the Atlanta Journal Constitution, the U.S. poultry lobby has been brokering a deal with its Mexican counterpart. Negotiators are suggesting tariffs remain in place. The Mexican government is conducting a probe on whether they should now levy a "safeguard tax" on U.S. chicken legs.
E-mail Monica Lopez at monicalopez@ziplip.com.
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