POLICY DISPUTES INFORMATION CONSORTIUM Eighth Agricultural and Food Policy Information Workshop Keeping the Borders Open March 6-9, 2002 Puerto Vallarta, México Wednesday, March 6 Enrique Domínguez Mexican Pork Council
BACKGROUND... NAFTA • 1986Mexico joined GATT • 1987at December inflation 159% • 1988Unilateral trade opening: • a) suppress of import licenses • b) tariff reduction (or disappear) • 1989Import tariff consolidation at 20% (under GATT 50%) and Reinstallation of import license on poultry, milk and corn • 91-92NAFTA´s negotiation begin at “stand-by status”
INTERNATIONAL SCENARIO • 86-93GATT: Uruguay Round´s 1992EU Integration • Agriculture an issue (finally) • 1994WTO arise on new Agriculture Trade Agreement
BACKGROUND...(asymmetries) Mexican Farmers rejection: • Animal and Plant Health Status: ONE WAY BUSINESS • Regionalization (yes but...) • Quality Standards: ONE WAY BUSINESS • it’s a Mexican domestic matter: • Enforce country of origin standards (at first) • Legal frame under OIE and Codex Alimentarius base
NAFTA members have a different regulatory framework that reflects the priorities of each Country and the asymmetry between one regulation and other. • There is no similarity or fairness as far as agricultural policy is concerned. For a long time, this asymmetry has increased the gap and this led the trade to request action to be taken to compensate this disparity. • Other, in Mexico is reflected in the little or total lack of food safety, quality and labeling standards and a lack of enforcement.
656.57% Fuente: Elaborado con datos de SHCP Incluye las fracciones 02031101, 02031201, 02031999, 02032101, 02032201, 0203299.
US and MEX interest rate 1985-2002 Fuente: INEGI P/preliminar
TRADE TENSION • INSPECTION AND VERIFICATION • On Same basis (mirror policies: homologation or equivalent standards) • Previous inspection (origin shipment) • Arbitration Mechanism (Perishables an example) • Specific Crossing Border by Product (and by season?)
CLOSE RESPOND • Equivalence regulation (homologation?) • Common custom inspection at border and or pre-inspection on origin • Verificationfor compliment standards
OTHER ISSUES ON FRONT • Agriculture Policies Difference • Market Structural Pricing • Market Access • Working togheter on new regulations on NAFTA and before UE new restrictions
It is a need of more constructive comunication. I am proud to be sharing with you, the challenge of this group to support our leader´s effort to bring successful Nafta agriculture goals. Muchas Gracias