Bipartisan Letter Tells USTR Request for Section 301 for Produce Not Credible
The U.S. trade representative should reject the Florida congressional delegation's Section 301 petition regarding Mexican produce imports, argued Iowa's two senators, as well as Sen. Roger Marshall, R-Kan., and Sen. Patty Murray, D-Wash.
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The senators argued in a letter sent Oct. 21 that Section 301 investigations have to rest on a strong foundation of evidence, and that the petition (see 2209090052), which sought "relief" for Florida growers, does not identify how Mexico's practices are "unjustifiable, unreasonable, or discriminatory and burdens or restricts United States commerce."
The petition talks about export targeting, which is in the Section 301 statute, but the senators say it fails to explain the alleged export targeting scheme, including how the Mexican products have become more competitive as a result.
Sen. Chuck Grassley, R-Iowa, who helped shepherd USMCA through the Senate, said any agricultural trade issue with Mexico should be addressed through USMCA's dispute settlement mechanism.
"The USMCA is intended to improve regional cooperation and avoid using unilateral actions like Section 301 investigations against our neighbors and largest trading partners,” the senators said.
The press release announcing the letter noted that in 2021, the U.S. exported $25.5 billion worth of ag products to Mexico, a 40% increase from 2020's export levels. Mexico is the second-largest destination for ag exports. "If USTR does not reject this petition, it could drive Mexico to retaliate with its own trade investigations and remedies. It would be devastating for U.S. exporters to lose any access to such a major export market," the release said.
Even if Mexico did not retaliate, action to make Mexican produce imports more expensive would raise prices for consumers in a time of high inflation, they argue.
"We respectfully urge you to reject the petition in the interests of American consumers, workers, and agricultural exporters,” the senators wrote.