News March 2019

US trade update: Estimated $80+ million could be lost in US fry exports to Mexico

Kam Quarles, VP of Public Policy at the National Potato Council (NPC) in the US is providing an update on the latest US trade issues related to potatoes in the video below, made publicly available by the NPC on March 21.

Among other issues discussed, Quarles touch on the matter of Mexico’s retaliation against recent US steel and aluminum tariffs.

He says that Mexico has eliminated the 0% import tariffs on fries under the previous NAFTA agreement. Now, US fries enter Mexico with a 20% duty. US competitors saw this opening and are taking full advantage, according to Quarles.

Canadian exports to Mexico has risen 46% since Mexico began retaliating, while EU exports have risen by over 160%.

EU and Canadian competitors took over a third of the previous volume of fries exported by the US to Mexico. Quarles says it is estimated that over $80+ million in US potato fry exports will be lost if these retaliatory actions were to continue.