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NAFTA AGRICULTURE
FACT SHEET:
Fresh Squash
TREATMENT OF TARIFFS:
Upon enactment of the NAFTA, two new U.S. tariff lines were created for squash.
U.S. squash imports from Mexico are covered by a special agricultural safeguard, which is designed as a seasonal tariff-rate quota. Under the safeguard, a certain quantity of imports enters at the NAFTA preferential tariff rate, while any amount in excess is assessed the lower of the current MFN rate or the MFN rate in place when the quantity is reached.
This quota quantity grows at a compounded 3-percent annual rate over the transition period. The quantity for the period Oct. 1, 1997-June 30, 1998 is 132,001 metric tons.
Mexico eliminated its 10-percent duty on squash imports from the United States.
The U.S. phaseout schedule and safeguard quotas for squash are as follows:
Season Base tariff Phaseout Safeguard base 1/
Oct. 1-June 30 2.4 cents/kg 10 years 120,800 mt
July 1-Sept. 30 2.4 cents/kg 5 years 2/ N/A
1/ Will increase 3 percent annually, compounded. Import data are from the Agricultural Marketing Service, USDA, not the Bureau of the Census. Current MFN rates are currently below the base tariff rates. N/A/ = not applicable.
2/ Duty free on January 1, 1998.
TREATMENT OF QUANTITATIVE RESTRICTIONS:
There are no quantitative restrictions affecting trade in squash.
U.S. Squash Trade with Mexico
Calendar Year |
1990 |
1991 |
1992 |
1993 |
1994 |
1995 |
1996 |
Import Value |
43,796 |
49,969 |
50,856 |
79,334 |
63,354 |
71,868 |
80,770 |
Import Volume |
74,681 |
77,534 |
81,376 |
89,285 |
99,257 |
113,219 |
135,439 |
Value in $1,000; volume in metric tons. U.S. exports to Mexico are zero or very small.
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