NAFTA AGRICULTURE
FACT SHEET:
Cheese
TREATMENT OF TARIFFS:
- Tariffs on cheese for both the U.S. and
Mexico are being eliminated in conjunction with treatment
of quantitative restrictions.
TREATMENT OF QUANTITATIVE RESTRICTIONS:
- Upon enactment of the NAFTA on January 1,
1994, Mexico converted its import licensing regime for
cheese imports from the United States to tariff-only
treatment.
- U.S. exports of fresh cheese were assessed
an initial 40-percent tariff, which is being phased out
over 10 years. U.S. exports of other cheeses to Mexico
were assessed an initial 20-percent tariff, which is also
being reduced to zero in equal installments over a
10-year transition period.
- U.S. import restrictions (Section 22
quotas) on Mexican cheese were replaced by a NAFTA
tariff- rate quota (TRQ) during a 10-year transition
period.
- Mexico initially received a 5,550-ton TRQ
for its cheese exports to the United States. This is an
aggregate quantity that includes all cheese previously
subject to Section 22 quotas. This quantity grows by a
3-percent compound annual rate over the transition
period. For 1998, the TRQ is 6,247 metric tons.
- In-quota shipments enter the United States
duty-free. Above-quota shipments from Mexico initially
faced a tariff equivalent of 69.5 percent, or a specific
duty ranging from $1,200 to $2,180 per ton, depending on
the type of cheese. These over-quota tariffs are being
phased out over 10 years.
- Mexico and Canada excluded their bilateral
dairy trade from liberalization in the NAFTA.
U.S. Cheese Trade with Mexico
Calendar
Year
|
1990
|
1991
|
1992
|
1993
|
1994
|
1995
|
1996
|
Export Value
|
4,482
|
7,972
|
15,397
|
20,073
|
26,504
|
13,052
|
13,310
|
Export Volume
|
1,827
|
3,230
|
5,923
|
7,217
|
9,962
|
4,636
|
4,726
|
Value in $1,000; volume in metric
tons. U.S. imports from Mexico are zero or very small.
 |
Last modified:
Friday, November 18, 2005
|
