Grassley Urges Mexico to Stop Unfair Treatment of U.S. Hogs, Hams
WASHINGTON – Sen. Chuck Grassley, chairman of the Committee on Finance, today urgedMexico to stop its unfair, inappropriate trade treatment of U.S. hogs and hams. Grassley wrote letters tokey Mexican officials describing two instances in which Mexico could be violating its international tradeobligations – the conduct of its antidumping investigation on U.S. hams and its sudden change of locationfor the inspection of live hogs from the United States.
“Mexico appears to be setting a pattern to restrict imports of U.S. hogs and pork products,”Grassley said. “These attempts are harming producers, including Iowa producers. And they’re doing littleto improve trade relations betweenour countries. I hope Mexico will stop these actions that raisequestionsabout its willingness to carry out its international trade commitments.”
The text of today’s letters follows.
August 17, 2004
His Excellency Fernando Canales
Secretary of Economy
Ministry of Economy
Alfonso Reyes 30
Col. Condesa
06140 Mexico, D.F.
Dear Secretary Canales:
I amwriting to express myconcerns regarding an actionbeing takenby Mexico that is negatively impactingU.S. hog and ham producers.
OnJune 1, 2004, the Government ofMexico self-initiated an antidumping investigation onimports of U.S.hams. This investigation fits into an unfortunate pattern ofMexico initiating antidumping investigations withthe intent of limiting U.S. exports of hogs and pork products, including hogs and pork products producedin Iowa. While I recognize the right of Mexico to initiate antidumping investigations, I am concerned thatthese investigations -- including the current one against U.S. hams -- are not only without merit, but are alsoat variance withMexico’s obligations under the Antidumping Agreement of the World Trade Organization(WTO).
The consistency ofMexico’s most recent antidumping investigation with its WTO commitments is subjectto question. The Antidumping Agreement prescribes the specific circumstancesunderwhichanantidumpinginvestigation may be self-initiated by a government, and it appears that the requisite circumstances werenot present in this instance. Mexico’s emphasis in examining possible injuryto Mexican hog producers, asopposed to hamproducers, appears at odds withWTOrulesregardingthe proper “domestic like product”in antidumping investigations. Further, Mexico’s dumping calculation is likely flawed as it focuses on theproduction costs for live hogs as opposed to hams.
It is troubling that Mexico’s antidumping investigation on U.S. hams was initiated on the same day thatMexico terminated its antidumping investigationon U.S. pork. While I welcomed the dropping of the porkcase, its immediate replacement by yet another apparently WTO-inconsistent antidumping investigationdoes little to assuage U.S. concerns about the willingness of Mexico to abide by its international tradeobligations.
I encourage Mexico to terminate its antidumping investigation on U.S. hams.
Sincerely,
Charles E. Grassley
Chairman
Cc:
His Excellency Javier Usabiaga
Secretary of Agriculture
His Excellency Luis Ernesto Derbez
Foreign Minister
His Excellency Carlos Alberto de Icaza Gonzalez
Ambassador of Mexico to the United States
The Honorable Robert Zoellick
U.S. Trade Representative
The Honorable Ann Veneman
Secretary of Agriculture
The Honorable Colin Powell
Secretary of State
August 17, 2004
His Excellency Javier Usabiaga
Secretary of Agriculture
Ministry of Agriculture
Municipio Libre 377
Col. Santa Cruz Atoyac
03310 Mexico, D.F.
Dear Secretary Usabiaga:
I am writing to express my concerns regarding an inspection policy recently adopted by Mexico that isnegatively impacting U.S. hog producers, including producers in Iowa.
On June 17, the Mexican government implemented a new law requiring that all veterinary inspections ofimported live animals take place in Mexico, a change from the prior practice of such inspections beingperformed by Mexicanofficials in the United States. Raising questions as to Mexico’s compliance withitsNAFTA and WTO notification obligations, the U.S. government was given no notice, and thus noopportunity to comment, prior to this action. Despite efforts by the Ministry of Agriculture to facilitateinspections, this new law has been disruptive to trade due to a lack of appropriate facilities in which toconduct inspections and uncertainty as to the disposition of animals that fail inspection.
This new law appears to be yet another example of Mexican efforts to restrict imports of U.S. hogs andpork products. For example, just days before the new inspection policy was implemented, Mexico selfinitiatedan antidumping investigation on imports of U.S. hams. Mexico’s attempts to limit imports of U.S.hogs and pork products are doing little to improve trade relations between our countries.
I encourage Mexico to revert permanently to the prior practice of Mexican veterinarians inspectinglivestock in the United States prior to export to Mexico.
Sincerely,
Charles E. Grassley
Chairman
Cc:
His Excellency Fernando Canales
Secretary of Economy
His Excellency Luis Ernesto Derbez
Foreign Minister
His Excellency Carlos Alberto de Icaza Gonzalez
Ambassador of Mexico to the United States
The Honorable Robert Zoellick
U.S. Trade Representative
The Honorable Ann Veneman
Secretary of Agriculture
The Honorable Colin Powell
Secretary of State
-30-
Next Article Previous Article