US confectioners urge Mexican border dispute resolution

2 September 2010 – A new 20 percent tariff on American chocolate and gum being shipped into Mexico has prompted an outcry from US confectioners, as the Mexican government has introduced a raft of new tariffs on American products.

The tariffs, which range from five to 25 percent, have been introduced as a result of an ongoing cross-border trucking dispute between the US and Mexico. However, under pressure from labour groups citing environmental, road safety and competition concerns, the US has continued to block Mexican cargo trucks from crossing the border.

President of the National Confectioners Association, Larry Graham says, “Previously confections from the United States crossed the border duty-free under NAFTA. Now millions of dollars of chocolate and gum exports are at risk.” The latter is especially significant as Mexico represents the United States’ largest export market by volume for pork products.

US trade representative Ron Kirk says in a statement that the government is working to resolve the issue “in a way that addresses safety concerns” while upholding trade obligations. He says, “Mexico is an important US export market and President Obama understands the economic pain that these tariffs cause for American farmers, companies and workers.” In 2001, Mexico took the issue to a dispute resolution panel, which recommended that the US comply with the NAFTA accord and allow Mexican trucks to cross the border. NCA will continue to urge the Obama Administration and Congress to find a resolution to the border dispute.