000461 Mexico Sets Anti-Dumping Duties On U.S. Beef

Mexico City - Mexico set definitive anti-dumping duties on beef imports from U.S. producers it said were threatening the local industry with cheap meat.

The Trade Ministry said that after an 18-month investigation it had determined several U.S. producers were sending meat across the border that was “causing damage to Mexican producers.”

It said it was slapping duties on U.S. whole and half beef carcasses, boneless cuts and cuts with bones ranging from $0.07 to $0.80 per kilogram (2.2 lbs).

The duties varied from producers and type of beef cut. Some of the U.S. companies facing the duties include ConAgra Inc. (NYSE:CAG - news), IBP Inc (NYSE:IBP - news), Excel Corp., a unit of agribusiness giant Cargill Inc., and Farmland National Beef Packing Co, part of the largest farmer-owned cooperative in the United States.

The damage caused by the U.S. imports “showed up in the national industry's loss of market share, falling prices, lower production, sales and profits”, the ministry said in a statement.

In August, Mexico -- which is tied with the United States and Canada in the North American Free Trade Agreement (NAFTA) -- set preliminary tariffs on U.S. beef imports citing unfair trade practices.

In 1998 Mexico imported more than 187,000 metric tonnes of U.S. beef, ranging from the finer cuts to beef brains, tripe and tongue, worth a total of some $452 million.

Imports of U.S. beef tongues, livers and edible strippings were deemed not to be negatively impacting the local industry and were not slapped with duties, the ministry said. In addition, USDA Prime Certified Angus Beef, veal and kosher beef were exempted from the tariffs.

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