Apple Growers Supports Move in Resolving Mexican Trucking Issue

The U.S. Apple Association (USApple) are elated by the Obama Administration's move to put an end on a longstanding trucking disagreement with Mexico. Due to this conflict, Mexico imposed a 20 percent tariff on apple exports.

Ray LaHood, the Secretary of Transportation, revealed that a proposal for re-opening U.S. roads to Mexican trucking companies, is being circulated by the administration, a starting point in an effort to find a solution to a longstanding trade dispute.

The Transportation Department announced the proposal after showing it to the legislative body. The proposal outlines conditions that Mexican long-haul truck companies would have to conform to, including a safety audit, emissions standards, and driver background checks.

“American apple growers welcome this important step toward reaching agreement to end the trucking dispute,” stated USApple President and CEO Nancy Foster. “The delay in action on this issue is costing billions to U.S. farmers and harming opportunities to grow future U.S. apple exports.”

In August 2010, the government of Mexico included fresh apples and processed apple products to the list of American commodities it is turning the tables on as counter-blow to the United States not adhering to a provision of the1994 North American Free Trade Agreement (NAFTA). The NAFTA duty permits Mexican haulers to transport commodities into America and was supposed to come into fruition in December 1995.

The disagreement first emerged in March 2009 when the U.S. Congress abolished the U.S.-Mexico Cross Border Trucking Pilot Program, which allow only a few of Mexican trucking firms haul freight beyond a 25-mile U.S. commercial zone. As a consequence, the U.S. defied aspects of bilateral trade obligations with Mexico set up through NAFTA. To reciprocate, the Mexican government came up with retaliatory tariffs on $2.4 billion worth of U.S. manufactured and agricultural exports.

In view of the Obama Administration's dormancy to find solution to this concern in order to meet its trade obligations, the government of Mexico intends to continue bullying crucial U.S. industries by maintaining taxes pm American goods, including apples.

U.S. depends largely on Mexico since it is its largest export market for U.S. apples. Fresh U.S. apples worth $207 million – 27.5 % of total U.S. apple export value, that's equal to 11.5 million boxes, was imported by Mexico last year.

Expecting the new tariffs, USApples collaborated with the Alliance to Keep U.S. Jobs, a broad business alliance working to resolve the dispute. The alliance has been meeting with officials at the Department of Transportation and the United States Trade Representative in hopes of hastening a resolution to the dispute. USApple is also obtaining the support of apple state congressional offices in the endeavor.