Mexico drops US wine tariff

US wine exports to Mexico are expected to improve with the ending of a 20% 'retaliatory' tariff.

Image: viajareua.com

Mexico lifted the tariff after US officials approved a Mexican trucking company’s permit to cross the border.

According to the US Wine Institute – which represents more than 1,000 wineries – Mexico imposed the tariff in 2009 during US-Mexico trade dispute regarding the safety of Mexican trucks.

Wine Institute international marketing director Linsey Gallagher said, ‘With the tariff elimination, and since our countries have been strong trading partners and share a common border, we hope to significantly expand California wine exports to Mexico.’

As a result of the tariff, ‘many wineries shifted their promotional resources to more predictable high-growth markets,’ she said.

US wine exports to Mexico, 90% of which are from California, reached a high in 2007, generating US$23.8m.

Exports dropped 26% in value in the eight months ending August 2011 but confidence is expected to return now that the tariff has been removed.

A settlement of the truck safety dispute was reached last March, and half of the tariff was removed in July. The entire tariff has been now eliminated.

Written by Panos Kakaviatos