South-Western - Management  
U.S. Hits Mexico on Trade Barriers
Topic Trade barriers
Key Words Trade, trade barriers, global economy, NAFTA, dumping
InfoTrac Reference CJ103438234
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News Story

The Bush administration submitted a formal complaint to the World Trade Organization (WTO) about Mexican import restrictions against U.S. beef and rice imports.

The United States last year exported $829 million of beef products and $103 million of rice to Mexico, the trade office said. U.S. exports of all agricultural products to Mexico reached $7.25 billion last year, doubling since 1993, the year before NAFTA implementation began.

In April and June of 2000, Mexico accused U.S. producers of dumping first beef then white long-grain rice (i.e. selling them below production cost). Mexican producers, who still employ a large part of the Mexican population, also have complained that their U.S. counterparts are heavily subsidized. In response, Mexico charged U.S. producers with duties that limited their ability to sell their products.

The United States frequently uses anti-dumping duties to protect domestic industries from foreign competition. But yesterday trade officials said that Mexican procedures and methodology in calculating the duties breaks WTO rules.

Questions
1.

Is NAFTA good or bad for the U.S. and Mexico? Who benefits? Who is hurt?

2.

Who benefits from trade restrictions? Who is hurt?

Source Jeffrey Sparshott, "U.S. Hits Mexico on Trade Barriers," The Washington Times Knight Ridder/Tribune Business News, June 17, 2003.
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