030608 USA Complains About Mexico’s Beef Restrictions

Washington - The United States filed a complaint Monday with the World Trade Organization accusing Mexico of placing unfair restrictions on US beef and long grain rice.

US Trade Representative Robert Zoellick said that Mexico, which is part of the North American Free Trade Agreement along with Canada and the United States, used anti-dumping laws to set up unfair barriers.

The complaint triggers a 60-day consultation period, which is required in WTO disputes. If the two sides fail to resolve the matter, a WTO panel would hear the complaint in a process that could take about 18 months, including any appeal.

Mexico imposed antidumping duties on US beef in April 2000, and on white long grain rice in June 2002, and amended those duties in December 2002.

"Trade remedies are an essential part of the rules-based international trading system -- but they must be used in accordance with those rules," Zoellick said.

"By filing a WTO case today, we are working to ensure that Mexico doesn't use foreign trade remedy laws as unfair barriers to US products, and that these laws are administered in a transparent and predictable manner in accordance with WTO rules. American ranchers and rice farmers expect to have fair market access for their products in Mexico."

US officials argue that Mexico failed to properly calculate the effects of US exports as well as the imposition of duties.

"Since NAFTA, Mexico has become our third largest market for food and agricultural products. It is unfortunate that we could not resolve these matters bilaterally. But, we have been patient and now must ensure that the trade agreements are fully enforced," said Agriculture Secretary Ann Veneman. "Our farmers expect that 'a deal is a deal' and must be lived up to."

A separate US complaint on Mexico's measures on beef is pending under NAFTA.

The United States has previously brought WTO challenges against Mexico's antidumping investigations of high fructose corn syrup and pork. Mexico withdrew both orders as a result of these challenges, according to the USTR.

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