Keeping the Borders Open 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

BACKGROUND... NAFTA 1986 Mexico joined GATT 1987 at December inflation 159% 1988 Unilateral trade opening: a) suppress of import licenses b) tariff reduction (or disappear) 1989 Import tariff consolidation at 20% (under GATT 50%) and Reinstallation of import license on poultry, milk and corn 91-92 NAFTA´s negotiation begin at “stand-by status”

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

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

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.

Fuente. Elaborado con datos del National Trade Data Bank

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

Fuente. Elaborado con datos del National Trade Data Bank

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

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?)

CLOSE RESPOND Equivalence regulation (homologation?) Common custom inspection at border and or pre-inspection on origin Verification for compliment standards

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

Muchas Gracias 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