Mexico has recently announced its decision to continue allowing tariff-free access for selected meat imports, including pork, beef, and poultry, until the end of 2024. This decision underscores the government’s commitment to supporting its food supply chain and addressing economic concerns.
Erin Borror, the vice president of economic analysis at the U.S. Meat Export Federation (USMEF), highlighted the significance of this move. She pointed out that this marks the second consecutive year of such a tariff suspension. Initially introduced in May 2022 as a response to inflationary pressures, the policy was extended through 2023 and now further to 2024.
This extended policy has brought about notable shifts in the competitive landscape for meat exporters. While pork from the U.S. and Canada already enjoyed duty-free access to Mexico due to existing agreements such as NAFTA and the U.S.-Mexico-Canada Agreement, the continuation of this policy has reshaped market dynamics.
The European Union has emerged as one of the beneficiaries of the prolonged zero-duty access, seeing increased opportunities for its meat exports to Mexico. However, Brazil’s entry into the Mexican market in early 2023 posed a significant challenge. Brazil quickly scaled up its pork shipments to Mexico, reaching over 5,000 metric tons per month. Nevertheless, Mexico temporarily suspended Brazilian pork imports in November 2023 following a court ruling that highlighted procedural shortcomings in Brazil’s adherence to Mexico’s sanitary standards.
While Canada and Europe faced challenges from Brazil’s increased presence in the Mexican market, they also experienced reduced competition from U.S. pork. Despite the intensified competition, U.S. pork exports to Mexico saw growth. Borror emphasized that the majority of U.S. pork exports to Mexico are chilled products, providing a competitive edge against Brazil’s offerings. As a result, the U.S.’s share of Mexico’s total pork imports increased to 84%, marking a significant rise from the previous two years.
In summary, Mexico’s decision to extend its tariff-free policy for selected meat imports until the end of 2024 has had a profound impact on the global meat trade landscape, with the U.S. strengthening its position as a leading pork exporter to Mexico.
