Mexico Imposes 9-30% Retaliatory Duties On Certain U.S. Products Due to Byrd Amendment Dispute Beginning August 18, 2005
According to a Mexican government DiarioOficial notice, and government and press sources, the Mexican Government has imposed retaliatory duties on certain U.S. products in certain Mexican Harmonized System (HS) codes in light of the U.S.' failure to repeal the Byrd Amendment.
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(The World Trade Organization (WTO) has ruled that the Byrd Amendment is inconsistent with the U.S.' international obligations. See BP note below for additional details on the Byrd Amendment dispute.)
Affected U.S. Exports Include Chewing Gum, Candy, Wine & Dairy Products
The DiarioOficial notice and sources indicate that these retaliatory duties2 are effective August 18, 2005, and affect U.S. exports to Mexico of the following products:
Certain chewing gum and candy(9% retaliatory duty) - Mexican HS 1704.10.01 and 1704.90.99
Certain dairy products (30% retaliatory duty) - Mexican HS 1901.90.053
Certain wine (20% retaliatory duty) - Mexican HS 2204.10.01, 2204.21.01, 2204.21.02, 2204.21.03, 2204.21.04, 2204.21.99, and 2204.29.99
the Continued Dumping and Subsidy Offset Act (CDSOA).
2According to Mexican Embassy officials, prior to the imposition of these retaliatory duties, the duty rates for these products were zero.
3The Diario Oficial notice also contains a separate provision for HS 1901.90.05. BP will update subscribers as additional details on this provision are available.
(See ITT's Online Archives or 09/02/04 news, 04090205, for BP summary of the WTO's authorization for Mexico and other countries/economies to impose retaliatory measures for the Byrd Amendment.
See ITT's Online Archives or 06/02/05 news, 05060215, for BP summary of U.S. Customs and Border Protection's intent to distribute fiscal year 2005 antidumping/countervailing revenues to affected domestic producers pursuant to the Byrd Amendment.)
Mexican government's Diario Oficial notice (in Spanish only) available via fax only by emailing documents@brokerpower.com
U.S. Dairy Export Council press release (dated 08/17/05) available at http://www.usdec.org/files/MemberAlert08-17-05MexicoTariff.pdf.
BP Note on Byrd Amendment
On May 1, 2005, both the European Union (EU) and Canada began imposing 15% additional duties on various U.S.-origin products in light of the U.S.' failure to repeal the Byrd Amendment.
Japan has also announced that it will begin imposing on September 1, 2005, retaliatory sanctions on certain U.S. products in 19 HS codes in light of the U.S.' failure to repeal the Byrd Amendment.
The Canadian government has previously explained that the WTO has granted retaliation authorization to Canada, the EU, Brazil, Chile, India, Japan, Korea, and Mexico. The Canadian government has also stated that although Thailand and Indonesia participated in the WTO Byrd Amendment dispute, these two countries did not request retaliation rights.
(The Byrd Amendment requires that the revenues from antidumping (AD) and countervailing (CV) duties assessed on or after October 1, 2000 be distributed on an annual basis to the affected domestic producers (i.e. currently operating producers (including worker representatives) that were either petitioners for the AD/CV duty order in question or interested parties in support of the petition) for specified qualifying expenditures (e.g. manufacturing facilities, research and development, personnel training). See ITT's Online Archives or 10/19/00 news, 00101837, for BP summary.)