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Texas Agriculture Archive

November 1, 2002

Mexico eyes U.S. trade practices

With the North American Free Trade Agreement (NAFTA) allowing tariff-free trade of most U.S. farm goods to Mexico set to go into full effect Jan. 1, Mexico's Trade Minister Luis Ernesto Derbez on Oct. 16 said Mexico will be on guard against unfair trade practices from the U.S. agriculture sector.

While Derbez said Mexico would not challenge the treaty itself, the nation will be ready to challenge any cases of subsidized U.S. goods exported under price conditions that make it impossible for local farmers to compete. Mexican growers believe several U.S. farm products such as corn, wheat and sugar are too heavily subsidized.

In general, Mexico has reacted positively to NAFTA. However, Mexican lawmakers are now calling on Derbez and Agriculture Minister Javier Usabiaga to renegotiate the agriculture section. So far the government has declined to push that alternative but, instead, is preparing an "agriculture protection" package it says will be designed to help Mexican farmers compete with U.S. producers.