Mexico Cuts Retaliatory Duties in Half
July 18, 2011
On July 8, 2011, Mexico reduced by 50% its retaliatory tariffs on certain U.S. goods. Mexico has imposed retaliatory tariffs on certain U.S. goods since March 2009 due to the United States suspending a cross-border trucking pilot program. Mexican officials announced the tariff reductions after U.S. Transportation Secretary Ray LaHood and the Mexican Secretary of Communication and Transportation signed a Memorandum of Understanding on Cross Border Trucking (MOU). The Department of Transportation issued a final plan for its cross-border trucking program on July 6, paving the way for this tariff reduction. The 50% reduction is in accordance with the June 10 agreement on Lifting Retaliatory Measures. The agreement further requires Mexico to remove the remainder of the retaliatory tariffs within five days of the first Mexican trucking company receiving authority to operate in the United States. According to Agriculture Secretary Tom Vilsak , this may happen in as little as 45 days. In addition, the new agreement requires Mexico to provide reciprocal authority for U.S. carriers to operate in Mexico.
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