USDA International Egg and Poultry
06 June 2012
International Egg and Poultry Review: Importing Meat and Poultry into Mexico, Trade Education SeminarsThe Consejo Mexicano de la Carne (COMECARNE) is organizing a series of 2-day workshops in several Mexican cities to improve the awareness and understanding of the process and inspection procedures for meat and poultry products imported into Mexico from the United States and other countries.
The USDA Foreign Agriculture Service (FAS) as well as two USDA Cooperator organizations will be speaking at these events along with Mexican and Canadian officials and industry organizations.
COMECARNE has picked a number of ports-of-entry that see high volumes of meat and poultry product trade for a series of workshops on the process and inspection procedures for products entering Mexico. The workshops have a several year track record and bring in a large number of participants.
Using USDA’s definition of prepared and preserved red meats, Mexico imported 74,511 metric tons (MT) from the world in 2011 with 68,715 MT originating from the United States. This amounted to U.S. $283.9 million and U.S. $250.9 million in imports respectively. Using USDA’s definition of fresh, chilled, frozen red meats, Mexico imported 871,857 MT from the world in 2011 with 764,526 originating from the United States. This amounted to U.S. $2.3 billion and U.S. $2.0 billion respectively. Using USDA’s definition of poultry meat, Mexico imported 715,845 MT from the world in 2011 with 698,288 MT originating from the United States. This amounted to U.S. $976.6 million and U.S. $919.5 million respectively.
Source: USDA FAS GAIN Report MX2032
Mexico: Anti-dumping Investigation
On January 19, 2012 the Secretariat of Economy (SE) announced its preliminary determinations to the anti-dumping investigation of U.S. fresh, chilled or frozen leg quarters (CLQ) HS codes 0207.13.03 and 0207.14.04. SE did not impose any provisional compensatory duties, but announced the price discrimination margins for producer/exporter business in a range of 62.90% to 129.77%. Interested parties were given 30 working days from this date to provide supplementary documentation (i.e. on or before March 1, 2012). Under Mexican law, a final decision will have to be reached by August, 2012.
Professor Dermot Hayes PhD, of Iowa State University, released a report “to assess the likely impact of the duties on prices and inflation levels in Mexico.” Using a model that was built to study the impact of trade disputes, the findings indicated in the short term, on an annualized basis, the Mexican duties would eliminate 250,000 tons of CLQ imports and replace them with 79,000 tons of imported whole chicken. Domestic consumption would fall by 163,000 tons as chicken prices rise by 22.4%. The Mexican poultry industry would increase production, but Mexican whole chickens would sell at a premium compared to imported U.S. CLQs. Dr. Dermot noted that “imported chicken leg quarters are an entry level animal protein for poorer consumers, especially in Northern Mexico.” These consumers would lose access to an inexpensive muscle meat.
Source: USDA GAIN Report MX2004; news wires; “Impact of Proposed Mexican Duties on US Leg Quarters on Mexican Consumers” by Dermot Hayes, Professor of Economics and Professor of Finance, Iowa State University.
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