A proceeding that could have resulted in trade measures against Mexico, including higher tariffs, has been cut short by the Office of the U.S. Trade Representative.
USTR received in September from a bipartisan group of members of Congress a petition requesting a Section 301 investigation into “the flood of imported seasonal and perishable agricultural products from Mexico, specifically, fruits and vegetables grown with subsidized horticultural infrastructure and other forms of Mexican government support.” The petition requested that USTR use its “broad authority to investigate and redress unreasonable trade practices that burden and restrict U.S. commerce” and work with the petitioners to “secure the relief needed to sustain the Florida seasonal and perishable agricultural industry.” While the petition did not request any particular relief, Section 301 authority has been used in recent years to impose higher tariffs on hundreds of billions of dollars’ worth of imports from China, European Union member countries, and others.
However, USTR announced Oct. 23 that it “could not conclude … that a formal 301 investigation would be effective and is not opening an investigation at this time.”
Instead, USTR will establish a private-sector industry advisory panel to recommend measures to promote the competitiveness of producers of seasonal and perishable produce in the southeastern U.S. USTR said it will work with this panel and members of Congress “to develop possible administrative actions and legislation that would provide real benefits to this struggling industry.”
In an Oct. 20 letter a handful of senators warned USTR that opening the requested investigation could have several negative consequences, including undermining the credibility of Section 301 as an effective tool, increasing the cost of fresh produce for U.S. consumers, and prompting retaliatory measures from Mexico.
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