Mexico launches investigation into US pork imports over dumping, subsidies
The Ministry of Economy opens a probe into unfair trade practices concerning pork leg and shoulder imports from the United States.
MEXICO – Mexico’s Ministry of Economy (SE) has begun an administrative investigation into imports of pork leg and shoulder from the United States following allegations of dumping and unfair subsidies.
The inquiry stems from a petition submitted by national pork producers, including Alimentos Kowi, Alimentos Soles, Comercializadora Porcícola Mexicana, Proteína Animal, and Sonora Agropecuaria, who claim that US imports have negatively affected local production.
According to the resolution published in the Federal Official Gazette, the investigation focuses on imports entering under tariff codes 0203.12.01, 0203.19.99, 0203.22.01, and 0203.29.99, regardless of the country of origin.
The Ministry confirmed that it accepted the petition after verifying that the applicants represent more than 65 percent of the national output in Federal Inspection Type (TIF) facilities.
SE has designated January 1, 2024, to December 31, 2024, as the period to analyze dumping and subsidy practices, while economic damage to the domestic industry will be reviewed over a broader timeframe from January 1, 2022, to December 31, 2024.
The resolution indicates that retroactive measures may be applied, allowing definitive compensatory quotas to be imposed on products declared for consumption up to 90 days prior to the implementation of provisional measures.
Petitioners contend that US pork producers benefit from federal and state-level subsidy programs that distort prices, and the Ministry will investigate programs managed by the US Department of Agriculture, including the Meat and Poultry Processing Expansion Program and COVID-19 relief initiatives such as the Coronavirus Food Assistance Program.
The investigation will also examine upstream subsidies for corn and soy, the main feed components for pork, which are claimed to reduce production costs for US packers and contribute to lower export prices.
State-specific subsidy programs in Iowa, Minnesota, North Carolina, Illinois, and Indiana will also be under review, as they are considered significant contributors to competitive advantages for US producers.
Imports from the United States account for 86 percent of all pork leg and shoulder entering Mexico, and the petitioners presented data indicating that US prices were on average 32.1 percent lower than domestic prices during the investigation period.
Interested parties, including US exporters and the US government, have 23 business days to submit responses and evidence in official forms as part of the ongoing inquiry.
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