Mexico to End Tariffs on Fruit and Other Ag Products
There is an old saying that when politics gets involved, farming can suffer. One of the prime examples of this was issue of allowing Mexican truckers to bring products into the US by truck which was allowed for several years. However, politics got involved a few years ago and the US stopped this and Mexico retaliated by imposing tariffs of up to 45% on certain Ag products exported by US farmers.
These tariffs taxed about $2.4 billion of products and were especially burdensome to the fruit growers in the US.
Now the good news. As of Wednesday, July 6, 2011, both the US and Mexico have agreed to allow the truckers back into the US. As a result of this signing, Mexico will cut in half their tariffs within 10 days and eliminate the remainder once full cross-border traffic begins.
This is good news for our farmers.
Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a principal with CliftonLarsonAllen in Walla Walla, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. Paul and his wife purchase an 180 acre ranch in 2016 and enjoy keeping it full of animals.
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