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Mexico Reinstates Sanctions against U.S. Dairy Blends through October 2006 Last Thursday, Mexican officials reinstated sanctions against U.S. exports of dairy blends—products with a milk solids content of at least 50% by weight - by imposing a 110% tariff on the imports until October 31.Last August, the Mexican government imposed a 30% tariff on U.S. dairy blend exports in retaliation for a U.S. law, the Byrd Amendment, which allows U.S. companies to receive funds from anti-dumping and countervailing tariffs on Mexican imports to the United States. Two years ago, the World Trade Organization (WTO) ruled that the Byrd Amendment is illegal, and Mexico is one of the plaintiff nations allowed to impose sanctions against the United States under trade rules. The Mexican government suspended the tariffs in August 2006 but announced its decision to reinstate them beginning September 14. "IDFA believes that the tariff on dairy blends was reinstated because the Mexican government would like to attain several more million dollars, which it is permitted to collect under the WTO ruling," said Helen Medina, manager of international affairs. For more information, contact Medina at hmedina@idfa.org or 202-220-3507. Posted September 18, 2006
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