990806 Mexico Slaps Stiff Tariffs On U.S. BeefAugust 7, 1999Mexico City - Mexico said it was slapping tariffs of up to 215% on U.S. beef imports saying U.S. producers were sending meat across the border at artificially low prices. Only live cattle imports from the country's northern neighbor were spared the tariffs, which the Trade Ministry said were set in order to protect the local beef industry from “unfair international trade practices.” The tariffs will go into effect with their publication Monday in the government's official gazette. But a Trade Ministry statement said the announced compensatory tariffs were preliminary and that a further investigation in coming months would yield a definitive ruling on the beef issue. The complex set of tariffs was bound to raise the ire of U.S. producers, who have disputed charges they are dumping beef on the Mexican market, saying Mexican consumers would only suffer from the trade row between NAFTA trade partners. The United States is the leading exporter of beef to Mexico, holding about 13% of the market. In 1998 Mexico imported more than 187,000 metric tons of U.S. beef, ranging from the finer cuts to beef brains, tripe and tongue, worth a total of some $452 million. The ministry specifically cited Excel Corp, IBP Inc., Farmland National Beef Packing Co., and ConAgra Inc. as U.S. companies that would be affected by the tariffs. But the four companies received lower tariffs after providing information on their exports to Mexico as “affected parties” in the Trade Ministry investigation, which studied imports between June and December 1997, the ministry said. The steepest tariff, of 214.52%, was set on imports of edible beef strippings -- except for livers and tongues -- beef bits shunned by most U.S. consumers but regular features at Mexican taco stands. But the individually named companies were given lower tariffs. For example ConAgra's strippings will have an 11.42% tariff, IBP's 36.22%, Excel's 17.10% and Farmland's 2.67%, the ministry said. Frozen tongue imports received the next-highest tariff, of 198.07%, but this duty was also lowered for specifically mentioned companies. Frozen liver imports were slapped with a 106.24% tariff. Boneless beef cuts got hit by a 74.98% tariff, with IBP's boneless cuts to pay 4.14% and ConAgra's 7.66%. Farmland and Excel, however, will not have to pay this tariff. Cuts with bones received a 12.76% tariff, although imports from ConAgra, Excel and IBP were ruled exempt. Farmland's imports got a 7.6% tariff. Whole and half carcasses, fresh-refrigerated or frozen, were hit by a 5.24% tariff but ConAgra, Excel, Farmland and IBP were not subject to the tariff.
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