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Textile Products On List Of Mexican Retaliation Tariffs

James A. Morrissey, Washington Correspondent

The US International Trade Administration has published a list of products that will be subject to new tariffs levied by Mexico in retaliation against the US suspension of a program that allowed US and Mexican trucking firms to operate along the border outside of designated commercial zones. Under the North America Free Trade Agreement, the United States and Mexico in 2007 agreed to a “ Demonstration Program” granting permission for 100 trucking firms from each country to take advantage of shipping goods into wider areas. However, as part of the Omnibus Appropriations Bill recently approved by Congress and signed by President Barack Obama, the United States dropped funding for the program.

As a result, Mexico has announced retaliatory tariffs on some 89 product categories, including two for man-made fiber yarn and two covering carpets. Tariffs of 15 percent will be assessed on man-made fiber staple yarns Categories 55111001 and 55113001 and on carpet and floor coverings categories 57049099 and 57050099.

The new tariffs are effective as of March 19.

April 14, 2009