Mexico Suspends TRQ for Dry Beans

WASHINGTON - Jul 7/14 - SNS -- Mexico has suspended the allocation mechanism that allows for the importation of dry beans under the tariff rate quota. The suspension applies to the 2014 calendar year, reports the U.S. agricultural attache for the country.

Each year, based on the dry bean domestic market situation, SE determines whether or not to implement a dry bean TRQ for that specific year. This year, on June 20th, SE published an Agreement that was announced in Mexico's Diario Oficial (Federal Register) suspending for 2014 the established TRQ allocation mechanism to allow for the importation of dry beans.

The new Agreement states that the SE must take into account the TRQ allocation mechanism, including data provided by official authorities, such as the Service for Food and Fisheries Information (SIAP), administrative agency of the Secretariat of Agriculture, Livestock, Rural Development, Fishery and Food (SAGARPA). According to SIAP, in 2013 Mexico's dry bean production was estimated at 1.3 million metric tons, an increase of 20% compared to 2012, implying sufficient availability of dry beans in the domestic market.

Taking into account this official information as well as accounting for dry bean imports from countries that have free trade agreements with Mexico, the SE estimates what is necessary to control the flow of dry bean imports. For 2014, abundant domestic dry bean production is expected. Therefore, per the Agreement assignment mechanisms for imports of dry beans under the TRQ (posted on June 27, 2008), the SE will not issue TRQ import's certificates on dry edible beans (H.S. 0713.33.02, 0713.33.03 and 0713.33.99) for the year 2014.

Some trade sources and media outlets had a few weeks earlier stated that the multi annual dry bean TRQ had been cancelled. However, that information was inaccurate. The suspension is only for 2014. Consequently, this indicates that in upcoming years, depending on the domestic dry edible bean production and ending stock levels, the Mexican government may be able to once again announce the mechanism to assign the TRQ for dry edible beans.

Also, as the Agreement states, Mexican importers may continue import duty free dry beans from NAFTA countries and Nicaragua in 2014. Thus, this Announcement does not affect imports of dry beans from the United States. If Mexican importers wish to import dry beans from other countries, they will be required to pay the corresponding import duties, i.e. 128% for China and 20% for Argentina.