Economics: Agricultural and food sectors at risk of sanctions over energy-sector violations of USMCA
US and Canadian requests for consultations over alleged USMCA violations in relation to various provisions and measures in Mexico’s energy sector policies may lead to the establishment of an arbitration panel and eventually the imposition of tariff measures to compensate for damages incurred by the affected parties. Diverse specialists have estimated that the current controversy could lead to the imposition of retaliatory measures worth between 10 and 30 billion dollars. The US and Canada would likely choose to apply them to high value-added Mexican exports, including those likely to earn the country the greatest tariff revenues, those that various interest groups have lobbied against or those that have been the subject of previous complaints or trade controversies.
Various agricultural and agro-industrial products meet some of those criteria, making them among the most likely targets. These include beer and tequila; berries and strawberries; avocados, bell peppers, cucumber and squashes. These products weigh heavily both in the value of Mexican agri-food exports and the sector’s production volumes and are also linked to multiple chains supplying manufacturing and service industries. Therefore, any curtailment of US demand would have a major impact on the Mexican economy.
Now read on...
Register to sample a report