January 8, 2003

Contact:
Kara Flynn
(202) 347-3600, ext. 207
flynnk@nppc.org


NPPC RESPONDS TO MEXICO'S ANTIDUMPING CASE AGAINST U.S. PORK

WASHINGTON, D.C.-January 8, 2003-Mexico's initiation of a dumping case against U.S. pork, which could lead to trade sanctions on U.S. pork imports, is politically motivated and without merit, said National Pork Producers Council (NPPC) President Dave Roper, a pork producer from Kimberly, Idaho.

"U.S. pork is not being dumped into Mexico," Roper said. "This case is a blatant attempt by Mexican pork producers to make the renegotiation of the North American Free Trade Agreement (NAFTA) a major political issue. Mexican pork producers, who have benefited significantly since NAFTA was signed in 1994, are not satisfied with the current treaty and are currently disrupting Mexican commerce with protests and other measures aimed at further restrictions on American agriculture."

According to Roper, Mexican hog producers are highly profitable and do not need protection from imported pork. "Mexican hog producers earn, on average, 17 times as much per kilogram of live hog as their counterparts in the United States," he said. "These profits reflect high pork prices in Mexico in comparison to the prices in international markets, and the success of the Mexican pork industry in exporting pork. It is ironic that while Mexican producers are requesting protection from imported pork they are also attempting to include pork in Mexico's pending Free Trade Agreement (FTA) with Japan. Further, at the same time that Mexican pork producers are trying to restrict pork imports, they are trying to liberalize imports of feedgrain into Mexico."

While Mexican pork producers could be made even more profitable if they succeed in blocking pork imports and expanding pork exports to Japan, U.S. pork producers will ultimately be devastated, Roper said. "Mexico is the second largest export market for the U.S. pork industry with 191,000 metric tons of pork valued at $270 million exported to Mexico in 2001. Many U.S. pork producers have not yet recovered from the price crisis of 1998 when live hog prices reached historic low levels. Any restriction of U.S. pork exports to Mexico would be very damaging. Live hog prices would decline significantly and many U.S. producers would be forced to cease operations."

Roper said that current trade data clearly indicate that Mexico has benefited significantly from the agriculture provisions of NAFTA. "Mexico apparently wants the best of all worlds: to be able to increase exports and block imports," he said. "This is contrary to NAFTA and must not be tolerated. Mexico should terminate the unwarranted case against U.S. pork exports and refrain from further protectionist measures against U.S. pork exports."

The National Pork Producers Council (NPPC) is one of the nation's largest livestock commodity organizations. It has producer members in 44 affiliated state associations and provides a unified voice for America's pork producers on a wide range of industry and public policy issues. NPPC's website is at www.nppc.org.

 

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