LETHBRIDGE (Staff) — There’s a whopping 272 percent tariff on potatoes going into Mexico which reads like a stern “keep out” sign for exporting nations like Canada.
Canadian growers need to pressure their governments to keep their products on the top of the priority list when negotiators are working to lift restrictions and tariffs, said Nithi Govindasamy of Alberta Agriculture.
It’s an industry worth fighting for, since Canadians export $28 million worth of seed potatoes, mostly to the United States each year. Another $85 million in prepared potatoes are also shipped around the world.
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Americans are simply eating less sugar. Consumption started to decline in the 1990s as artificial sweeteners grew in popularity. Farmers this year planted their smallest sugar beet acreage since 1982.
Now that the North American Free Trade Agreement has been signed and a world trade settlement is coming, Mexico will have to drop tariffs quickly, says Govindasamy.
New rules under GATT
As head of the agriculture trade secretariat, he was speaking at the Prairie Potato Council meeting in Lethbridge. He explained the new rules now that the General Agreement on Tariffs and Trade and NAFTA are in place.
If Canadians ship more than 4,000 tonnes of fresh potatoes to Mexico the 272 percent tariff is automatically applied. This tariff must disappear in 10 years. Seed potatoes are not allowed in because the Mexicans claim they don’t want to import disease.
While Canadians won’t likely see a large increase in the fresh potato market to Mexico, there is an opportunity to offer seed potatoes once restrictions are lifted.
Removing that restriction could take years, say trade experts.
