1. 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

2. 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
NAFTA´s negotiation begin at “stand-by status”

3. INTERNATIONAL SCENARIO
86-93 GATT: Uruguay Round´s
1992 EU Integration
Agriculture an issue (finally)
1994 WTO 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 , , , , ,

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

9. US and MEX interest rate
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
Verification for 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. 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