On Tuesday, the US Dairy Export Council issued an alert that Mexico had announced it would impose tariffs on US cheese in retaliation for US non-compliance on certain NAFTA obligations - specifically Mexico's cross-border trucking access. Retaliatory tariffs from 20-25% could begin being imposed as early as today. According to USDEC, it appears that most cheese exports to Mexico would be impacted, a significant point of concern given Mexico's position as the primary destination of US cheese exports, having claimed about 30% of US export volume YTD through June (53 million pounds), according to USITC.
Cheese was not alone on the retaliation list. Pork, apples and California oranges were also on the list, leading some to believe that Mexico is hoping the lobbying bodies - and lawmakers from key states - will get involved and put pressure on the Obama administration to resolve the long-standing trucking issues.
