Mexico lifts tariffs relating to trucking dispute - for now; FDA issues safety guidance on flooded crops

10/24/2011 06:36:00 AM
Tom Karst

So far so good on the lifting of tariffs by Mexico related to the cross border trucking dispute. Mexico announced it was suspending the tariffs but said they could be reapplied if the pilot program falters.

From the Oct. 21 Mexican Federal Register: (Google Translate)

DOF: 21/10/2011
Decree abrogating the diverse by amending Article 1 of the diverse in establishing the Applicable Rate for 2003, the General Import Tax, for goods originating in North America, published on December 31, 2002, for respect to goods originating in the United States of America.
The margin a seal with the national emblem, which reads: United Mexican States .- Presidency of the Republic.
FELIPE DE JESUS ​​CALDERON HINOJOSA, President of the United Mexican States, in exercise of my powers under Article 89, Section I of the Constitution of the United Mexican States, based on Article 131 of the Constitution, 2019 of Free Trade in North America, 31 and 34 of the Organic Law of Federal Public Administration, and 2., 4th., fraction I and 14 of the Trade Act, and
WHEREAS
That the November 22, 1993 the Senate approved the Free Trade Agreement (NAFTA), according to a decree published in the Official Journal of the Federation on December 8 of that year, which was given decree promulgating known in that body reported on 20 December of that year and came into force on January 1, 1994;
That Articles 1108 and 1206, and Annex I "Reservations for Existing Measures and Liberalization Commitments" of NAFTA on the opening of freight services in the border states of our country and the United States of America as of December 18, 1995 and throughout the territory of both countries from January 1, 2000;
That the February 2, 2000 he joined the arbitration panel requested by the United Mexican States under NAFTA Chapter XX, which regulates the procedures for dispute resolution, due to failure of the United States of America to the obligations outlined in Annex I referred to the previous paragraph, as well as those of national treatment and most favored nation under Articles 1102, 1103, 1202 and 1203 of the Treaty, on cross-border transport services;
That the February 6, 2001 the arbitration panel issued its final report that determined the failure of the United States of America to the obligations described in paragraph above and recommended that country to carry out the necessary actions to comply with the commitments acquired under NAFTA;
That NAFTA provides that if a final report in its arbitration panel has ruled that a measure is inconsistent with the obligations of this Agreement or causes nullification or impairment in the sense of Annex 2004 of the Treaty itself and the Respondent has failed to an agreement with any complaining Party on a mutually satisfactory solution, such complaining Party may suspend benefits of equivalent effect to the respondent, so far as they have reached agreement on the resolution of the dispute;
That due to the aforementioned suspending the application of benefits of equivalent effect to the United States of America, by decrees published in the Official Journal of the Federation on March 18, 2009 and August 18, 2010, through the modification of preferential tariff treatment accorded to various goods originating from this country;
That the June 10, 2011 was signed an Agreement between the Ministry of Economy of Mexico and the United States Trade Representative Office of the United States of America (Agreement), which was determined by modifying the suspension of benefits as mentioned above, conditioning that change by the signature and implementation by the United States of America Memorandum of Understanding between the Department of Transportation United States of America and the Ministry of Communications and Transportation of the United Mexican States on the Cross-Border Trucking Services International Freight (Memorandum of Understanding);
That, in order to provide a mutually satisfactory solution to that dispute over freight transportation services across borders, July 6, 2011 was signed the Memorandum of Understanding, which allows the United States towards fulfilling of its obligations under NAFTA;
That the Memorandum of Understanding, the Parties established an early stage, not to exceed a period of three years from its entry into force, which will enable the provision of long distance services to carriers that are domiciled in the territory the other country, provided they comply with the procedures referred to in the instrument and its Annex;
That pursuant to the provisions of the Agreement, the Government of the United Mexican States considered appropriate to adjust the suspension of benefits of equivalent effect to the United States of America by the "Decree amending Article 1 of the different laying establishes the Applicable Rate for 2003, the General Import Tax, for goods originating in North America, published on December 31, 2002, with respect to goods originating in the United States of America, "released in Official Journal of the Federation on July 7, 2011;
That the Agreement provides that within five business days to be given to the first Mexican carrier authorized to operate in the territory of the United States, the government of the United Mexican States shall waive suspension of benefits established in the decree mentioned in the previous paragraph, without prejudice to the rights acquired by the United Mexican States to restore the suspension of benefits pursuant to Article 2019 of NAFTA and the arbitration panel's final report referred to above, at the time that the Executive Federal government estimates that the United States of America has breached the terms agreed in the Memorandum of Understanding or its reporting obligations under NAFTA;
That the October 14, 2011 United States granted to a Mexican carrier authorized to operate freight services cross-border long-haul in the territory of that country;
That due to the above, the Federal Executive considers it appropriate to my office no longer apply the temporary suspension of benefits for certain goods originating in the United States of America established by our country in the decree published in the Official Journal of the Federation on 7 July 2011;
That pursuant to the provisions of the Trade Act, this Act has the favorable opinion of the Foreign Trade Commission, I have had to issue the following
DECREE
Article One .- It repeals the "Decree amending Article 1 of the diverse in establishing the Applicable Rate for 2003, the General Import Tax, for goods originating in North America, published on December 31 2002, with respect to goods originating in the United States of America ", released in the Official Journal of the Federation on July 7, 2011.
TEMPORARY
FIRST .- This Decree shall enter into force upon its publication in the Official Journal of the Federation.
SECOND .- From the entry into force of this Decree, goods originating in the United States of America stated in the "Decree amending Article 1 of the diverse in establishing the applicable rate for 2003 of General Import Tax, for goods originating in North America, published on December 31, 2002, with respect to goods originating in the United States of America ", released in the Official Journal of the Federation on July July 2011 will be subject to the provisions of Article 1 of the "Decree establishes the Applicable Rate for 2003, the General Import Tax, for goods originating in North America," published in that body broadcast on December 31, 2002.
Given in the Residence of the Federal Executive in Mexico City, to October 18 of two thousand and eleven .- Felipe de Jesus Calderon Hinojosa .- Signature .- The Secretary of Finance Jose Antonio Meade Kuribreña .- Signature .- The Secretary of Economy, Bruno Ferrari García de Alba Francisco .- Signature.


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