The U.S. and Mexican governments signed an agreement on Wednesday allowing Mexican trucks to haul goods into the U.S. and therefore cutting Mexico’s retaliatory tariffs on U.S. exports in half.
Due to the actions by Congress to cut the programs funding, the U.S. was in violation of NAFTA. As a result, Mexico was entitled to slap retaliatory tariffs on U.S. goods. They did this on a number of products including pork.
In signing a Memorandum of Understanding Wednesday, the two governments agreed that as long as Mexican trucks meet the safety guidelines set by the Department of Transportation, they can drive on U.S. roads.
Kent says that with the signing of that MOU, the first half of the retaliatory tariffs were lifted. He says that they hope that within the next 6 to 8 weeks, the first Mexican carrier will be approved by the U.S. government. Once that takes place, the remaining tariffs will be lifted.
© Northern Ag Network 2011