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Mexico Slaps Tariffs on U.S. Products

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In the latest chapter of a long-running dispute over Mexican truckers' access to U.S. highways, Mexico’s trade officials put tariffs on U.S. products. Texas Public Radio’s Eileen Pace reports.

August 19, 2010 · The growing political rift over securing the nation’s southern border appears to be taking a toll on international trade with Mexico.

Under the North American Free Trade Agreement, Mexico’s long-haul truckers are supposed to have access to U.S. highways but congress canceled funding for the program. Now Mexico is responding with tariffs on U.S. products heading south of the border.

Kyle Burns is the CEO of the Free Trade Alliance based in San Antonio.

“It’s on a variety of goods, so the tariffs will revert to their most favored nations' treaty status, and that will make us a lot less competitive in Mexico, and it will give foreign countries an opportunity to gain access to that market we used to have,” said Burns.

Burns said it is unfortunate that the anti-Mexico political climate is indirectly resulting in a breakdown of free trade, and he said Mexican truckers have nothing to do with border security.

“In terms of the trucking issue, they pass safety checks in Mexico. They meet every requirement by the Department of Transportation. In fact, we have U.S. inspectors go there and inspect the trucks, inspect their books, hold them to every standard that the U.S. companies are held to," Burns said. "So it’s really discriminatory in a sense that if you look at the fact that Canadians truckers are allowed into the United States.”

Burns said these tariffs are going to cost American food producers billions of dollars in lost sales.

Mexico is the nation’s third largest trading partner and the top export destination for Texas.