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October 2000
U.S. Hog and Pork Trade with Mexico
During the second week of September, a USDA team traveled to Del Rio, Eagle Pass, and Laredo, Texas. The purpose of this trip was to gain a better understanding of U.S./Mexican hog and pork issues at the border. The team spent most of the trip talking to officials at the export pens for live hogs and forwarding agents.
Mexico is an important hog and pork trading partner with the United States. During 1999, U.S. live hog exports to Mexico totaled nearly 161,000 hogs at a value of $13.9 million. However, an anti-dumping duty and restrictive sanitary requirements applied to the hogs by Mexico caused live hog exports for the first 7 months of 2000 to plummet to only 49,000 hogs at a value of $5.3 million. Recently, a new protocol for slaughter hogs over 110 kg was signed and Mexico initiated a review of the compensatory duties of live hogs for slaughter. The new protocol will create immediate market opportunities for U.S. slaughter hog exporters, while the review of the anti-dumping duty may be finalized by December. Mexico’s market share of U.S. hog exports represents about 90 percent of the total U.S. hog exports.
U.S. pork exports to Mexico in 1999 represented about 15 percent of U.S. exports to the world with a value of $110 million. Despite the presence of a tariff rate quota that assesses a duty of 6 percent on in-quota shipments and 20 percent on above-quota shipments, pork exports have soared in 2000. For the first 7 months of 2000, U.S. pork exports to Mexico totaled nearly $101 million, close to the total of all last year. With continued growth in the Mexican economy, the demand for pork is expected to continue.
Following are presentations containing images of hogs and pork preparing to leave the United States:
For more information, contact the author, Tim Rocke, of the Dairy, Livestock and Poultry Division, Foreign Agricultural Service.
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