Mexico lowers frozen potato tariff
A view of the border between the U.S. and Mexico. A tariff on U.S. frozen potato products was recently reduced from 20 percent to 5 percent.
MOSES LAKE — The Mexican government recently lowered a 20 percent tariff on frozen potato products to 5 percent.
But U.S. potato growers are still not on a level playing field with Canadian producers and processors because Canadians aren’t charged the tariff, according to the Washington State Potato Commission.
The tariff was put in place in April 2009 after the U.S. government stopping a cross-boarding trucking program with Mexico.
“We’re hopeful the (Obama) administration can come through and actually provide some type of plan that will allow Mexican trucks to operate in the U.S. and help remove all tariffs, not only on French fries, but now on apples, onions, frozen sweet corn and various other commodities grown in Washington,” said Matt Harris, the commission’s trade director, on Thursday.
The commission hopes the administration will take action and know growers cannot continue doing business this way, he added.
There’s no word on when the frozen potato tariff will be eliminated.
“The fix lies with our administration,” Harris commented. “If they look at a way to reestablish the trucking program that was in existence, it would be a first step in solving the issue. This looks like something that will turn into a long-term problem.”
The commission has spoken with its Congressional delegation about the issue.
They are advocating for growers, but the administration doesn’t want to make a move, Harris commented.
In Washington state, growers lost contracts and 10,000 fewer acres were planted last year.
“As small to medium-sized businesses, we can’t absorb the loss of the market,” he said.
Tariffs were added to apples, cheese, pistachios, chewing gum, pork, ketchup, and some manufactured products.