NAFTA AGRICULTURE
FACT SHEET:
Corn
TREATMENT OF TARIFFS:
- Upon enactment of the NAFTA on January 1,
1994, the United States eliminated its tariff of 0.2
cents per kilogram on corn imports from Mexico.
TREATMENT OF QUANTITATIVE RESTRICTIONS:
- When the NAFTA went into effect, Mexico
converted its import licensing regime to a transitional
tariff-rate quota (TRQ) for corn imports from the United
States (and Canada). The TRQ will be in effect for 15
years.
- For U. S. corn, the initial duty-free
quota into the Mexican market was 2.5 million metric tons
of corn in 1994. This amount grows at a 3-percent annual
compounded rate over the 15-year transition period. The
quota for 1998 is 2,813,772 tons.
- U.S. exports to Mexico in excess of the
quota are assessed a tariff (based on the
"tariffication" of Mexico's import license)
initially equal to $206 per metric ton, but not less than
215 percent. Over the first 6 years of the agreement, an
aggregate 24 percent of this over-quota tariff is being
eliminated, with the remainder to be phased out over the
rest of the 15-year transition period. For 1998, the
over-quota tariff is $165 per metric ton, but not less
than 172 percent.
- The NAFTA established a separate TRQ for
Mexico's corn imports from Canada. Canada gained
duty-free access for an initial quota of 1,000 metric
tons of corn. The annual growth rates for this quota
amount, the initial level of the over-quota tariff, and
the over-quota tariff phaseout are the same as those set
for the United States.
U.S. Corn Trade with Mexico
Calendar
Year
|
1990
|
1991
|
1992
|
1993
|
1994
|
1995
|
1996
|
Export Value
|
401,130
|
147,784
|
128,886
|
35,225
|
340,440
|
359,123
|
1,002,717
|
Export Volume
|
3,494,484
|
1,316,066
|
1,137,238
|
288,681
|
3,054,111
|
2,858,829
|
6,314,387
|
Import Value
|
81
|
344
|
314
|
404
|
534
|
957
|
1,015
|
Import Volume
|
386
|
2,019
|
1,216
|
964
|
1,689
|
2,498
|
2,775
|
Value in $1,000; volume in metric tons.
 |
Last modified:
Friday, November 18, 2005
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