1997, Number 2
Description and analysis of the definitive negotiation regarding the Mexican national poultry industry within the North American Free Trade Agreement
Alonso PF
Full text
Language: English/Spanish
References: 8
Page: 157-167
PDF size: 1052.87 Kb.
ABSTRACT
The objective of this study was to both describe and analyze what was negotiated within the North American Free Trade Agreement (NAFTA) about the Mexican National poultry industry. Quotas and tariffs were gathered after checking secondary sources for chicken, turkey meat and egg. Obtained data was as follows: a) Chicken and turkey: A quota of 95,000 tonne with an annual increment of 3% calculated until January, year 2003, when this quota will disappear and b) Egg: A quota of 6,500 tonne, with an annual increment of 3% calculated until January, year 2003. When these quotas are exceeded tariffs are applied. Regarding broilers the tariffs were established in 260% and turkey in 133%. In both products, degravation is GATT type. In the first six years degravation will be of 24% (4% every year) and in the last 4 years, degravation will be of a 76% (19% each year). In the last 4 years degravation will be linear, reaching 0% until it completes its degravation period in 10 years. Regarding egg (fertile inclusive), 50% consolidated GATT tariff was established towards 10 years. Industrialized and frozen powdered egg was negotiated implementing a linear degravation towards 10 years. In January, year 2003, tariff will stop being applied. It was established that turkey and chicken pastes imported from the USA to Mexico has affected the Mexican swine industry, because these pastes have been used instead of pork meat. It is possible to define some tendencies: a) The NAFTA normalization standards were fixed above international standards, constituting, therefore, custom barriers for national chicken breast, b) The negotiation's fitosanitary protection standards were above to those established by international organisms permitting possibilities to the USA to apply non custom barriers, c) Little advance regarding fitosanitary restrictions and, therefore, limiting Mexico to export to those free with little incidence and prevalence of velogenic viscerotropic Newcastle, Inclusion Body Hepatitis, avian influenza and Salmonellosis and d) An increasing import of poultry products in 1994 exceeding the 100.14% quota on chicken and turkey meat, 114% of chicken and turkey pastes and an 80.24% of egg. It is concluded that: 1) The only responsible institution for the obtained results in the negotiation was the Ministry of Trade and Industrial Promotion (SECOFI);2) The international commerce of poultry between Mexico and the USA has been only in one direction, i.e., from the USA to Mexico; 3) The Mexican poultry industry, even with both high quotas and tariffs, is a "loosing" activity in the NAFTA negotiation, because it lacks of an export capacity via non custom barriers and therefore, losses of internal market segments which favours the import of American poultry subproducts; 4) The national poultry industry has to reach a technological level, which will enable the country to have an access to compete with the American, as well as the Canadian poultry industries; 5) The government must guarantee a commercial policy which minimizes the elements that hinder competitivity and 6) Agreed terms of quotas and tariffs in the NAFTA are not enougt to reach NAFTA USA's technological levels, resulting in important flows from the USA to Mexico of subproducts and products, causing bankrupcies to medium and smallholders. This situation also causes a lack of direct-and indirect employment and, therefore, the internal market shrinks.REFERENCES