Tariff Not Seen Halting U.S. Pork Sales to Mexico

Mexico's 5 percent tariff on U.S. pork is unlikely to stop imports of the meat, as U.S. produce will remain cheaper than competitor prices, according to U.S. analysts

Mexico 's 5 percent tariff on U.S. pork is unlikely to stop imports of the meat, as U.S. produce will remain cheaper than competitor prices, according to U.S. analysts.

In three of the past five years, at least 20 percent of U.S. pork exports have gone to Mexico , but U.S. exporters were concerned this week after Mexico took its latest step in a long-running disagreement with the United States .

But analysts expect a quick resolution of the trade dispute, which saw the introduction of the tariff in retaliation for the U.S. limiting access for Mexican trucks to U.S. roads.

Many believe the tax will be removed, and even if it is kept in place, Mexico is likely to keep buying U.S. produce.

"It is something the trade is confident will be worked out sooner rather than later," said Don Roose, an analyst with U.S. Commodities.

Canada supplies some pork to Mexico , but Canadian production has been declining, and it may find it hard to replace the volume of pork from the United States .

"The reality is a lot of the reason that they buy so much from us is the proximity. It is a shorter haul," said RonPlain, University of Missouri agricultural economist. "A 5 percent tariff is not going to be big enough to cause them to stop buying U.S. pork." 

Page 1 of 51
Next Page