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POLICY DISPUTES INFORMATION CONSORTIUM Eighth Agricultural and Food Policy Information Workshop

POLICY DISPUTES INFORMATION CONSORTIUM Eighth Agricultural and Food Policy Information Workshop. Keeping the Borders Open. March 6-9, 2002 Puerto Vallarta, M é xico Wednesday, March 6. Enrique Domínguez Mexican Pork Council. BACKGROUND... NAFTA. 1986 Mexico joined GATT

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POLICY DISPUTES INFORMATION CONSORTIUM Eighth Agricultural and Food Policy Information Workshop

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  1. 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

  2. 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”

  3. INTERNATIONAL SCENARIO • 86-93GATT: Uruguay Round´s 1992EU Integration • Agriculture an issue (finally) • 1994WTO arise on new Agriculture Trade Agreement

  4. 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

  5. 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.

  6. Fuente. Elaborado con datos del National Trade Data Bank

  7. 656.57% Fuente: Elaborado con datos de SHCP Incluye las fracciones 02031101, 02031201, 02031999, 02032101, 02032201, 0203299.

  8. Fuente. Elaborado con datos del National Trade Data Bank

  9. US and MEX interest rate 1985-2002 Fuente: INEGI P/preliminar

  10. 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?)

  11. CLOSE RESPOND • Equivalence regulation (homologation?) • Common custom inspection at border and or pre-inspection on origin • Verificationfor compliment standards

  12. OTHER ISSUES ON FRONT • Agriculture Policies Difference • Market Structural Pricing • Market Access • Working togheter on new regulations on NAFTA and before UE new restrictions

  13. 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

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