EU Pork Suppliers to Benefit from Mexico's Zero Duty Policy

The initiative is part of the government's efforts to fight food price inflation and will run until at least the end of 2022.

As part of its efforts to combat food price inflation, the Mexican government has suspended import duties on pork, beef and poultry until the end of 2022. While the measure appears to favor America, it actually opens the gate for EU pork exporters, who are expected to benefit the most from the policy, according to Erin Borror, U.S. Meat Export Federation vice president for economic analysis.

“This general policy has been carried out by Mexico in the past, and in fact even last year they reopened a duty-free 10,000 ton quota for pork tenderloin, and they open periodic 30,000 ton quotas for poultry,” says Borror. 

In addition, she mentioned that all pork and beef from the US and Canada (including various types of meat and processed products) are already entering Mexico at zero duty in accordance with the North American Free Trade Agreement and the US-Mexico-Canada Agreement. Brazilian pork and beef are not suitable for Mexico, so she explains that European pork suppliers will be the main beneficiaries of this policy change.

Borror does not see much of an impact on Mexican beef imports, with almost all beef already entering the market duty-free from the US, Canada and Nicaragua. Australia exports small amounts of meat to Mexico, but it is subject to a 14.6% duty under the Comprehensive and Progressive Trans-Pacific Partnership Agreement. She also believes that Brazil will be a major beneficiary from the poultry industry, as imports from other major suppliers, including the United States, are already entering Mexico at zero duty.