2012 Milk Powder TRQ Announced…

A Lastest News about Dairy Products in Mexico

Posted on: 23 Jan 2012

On December 30, 2011, Mexico's Secretariat of Economy (SE) announced it would allow a total of 80,000 metric tons (MT) of milk powder to be imported duty free from Most Favored Nations (MFN) as part o

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Voluntary Public - Date: 12/30/2011 GAIN Report Number: MX1105 Mexico Post: Mexico 2012 Milk Powder TRQ Announced… Limited Effect Forecast on U.S. Report Categories: Dairy and Products Agriculture in the News Policy and Program Announcements Agricultural Situation Approved By: Adam Branson Prepared By: Gabriel Hernandez Report Highlights: On December 30, 2011, Mexico's Secretariat of Economy (SE) announced it would allow a total of 80,000 metric tons (MT) of milk powder to be imported duty free from Most Favored Nations (MFN) as part of its World Trade Organization (WTO) commitments. This TRQ will be in effect from December 31, 2011, until December 31, 2012. U.S. milk powder will continue to be granted unlimited duty-free access to the Mexican market under NAFTA. MX1105 2012 Milk Powder TRQ Announced… Limited Effect Forecast on U.S. Page 1 General Information: Disclaimer: This summary is based on a cursory review of the subject announcement and therefore should not, under any circumstances, be viewed as a definitive reading of the regulation in question, or of its implications for U.S. agricultural export trade interests. In the event of a discrepancy or discrepancies between this summary and the complete regulation or announcement as published in Spanish, the latter shall prevail. This report summarizes the official announcements published in Mexico’s Diario Oficial (Federal Register) on December 30, 2011. SE announced in the Federal Register that Mexico would allow, during 2012, a total of 80,000 metric tons (MT) of milk powder to be imported duty free from MFNs as part of its WTO commitments. This announcement establishes the allocation mechanism which is to complement domestic supply for Mexican milk powder processors. This TRQ will be in effect from December 31, 2011 until December 31, 2012. H MFN TRQ .T.S. Number and Product for 2012 0402.10.01 Milk in powder or tablets, containing not more than or equal to 1.5 percent by weight of butterfat. Without sugars or sweeteners 80,000 MT 0402.21.01 Milk in powder or tablets, containing more than 1.5 percent by weight of butterfat. Without sugars or sweeteners The mechanism through which the TRQ will be allocated is: Be Allocation Quantity neficiaries Mechanism (MT) Application period A. Public sector businesses supplying milk to From December 31, low-income consumers, Direct 40,000 2011 up to November 30, 2012 -15 business days B. Private sector businesses that use milk from December 31, powder as an input and have previously Direct 36,086.4 2011 received TRQ allocations. -15 business days from August 1, 2012 -15 business days C. Private sector businesses that use milk from December 31, powder as an input and have not previously Direct 1,000 2011 received TRQ allocations. -15 business days from August 1, 2012 D. Business parties that hold a Border Compa From December 31, ny Registry located in the State of Q Direct 2,913.6 2011 up to February uintana Roo or along the southern border 29, 2012 region with Guatemala. MX1105 2012 Milk Powder TRQ Announced… Limited Effect Forecast on U.S. Page 2 The applications for the request of allocation of the cupos (import permits) must be submitted using form SE-03-011-1 to the General Directorate of Foreign Trade of SE. Once the quantity to be imported is allocated under the TRQ, SE will issue the import permits to the authorized companies. FAS/Mexico Analysis: This action is based on WTO commitments and this TRQ is equal to previous years’ levels issued by Mexico. Thus, U.S. milk powder will not face additional international competition in the Mexican market and U.S. firms will continue to be granted unlimited duty-free access to the Mexican market under NAFTA. This is NOT an invitation for bids to purchase selected dairy products. Rather, it is an auction of the right to import the listed product duty free. Thus, the auction is limited to Mexican companies within the dairy industry who use dairy products in their production process. Important Dates 1. Publication Date: December 30, 2011. 2. Implementation Date: December 31, 2011 3. Validity Period: Up to December 31, 2012 Author Defined: FAS/Mexico Web Site: We are available at www.mexico-usda.com or visit the FAS headquarters' home page at www.fas.usda.gov for a complete selection of FAS worldwide agricultural reporting. Other Relevant Reports Submitted by FAS/Mexico: Report Subject Date Number Submitted MX1083 2012 Dairy and Products Annual: MY2012 Forecast Flat 11/14/2011 MX1076 Mexico Eliminates Trucking Retaliation Tariffs Against Ag. 10/21/2011 Products MX1042 Market Concentration in Selected Agricultural and Food 5/25/2011 Subsectors MX1019 Mexico Consolidates Labeling Requirements for Milk and 3/16/2011 Hams MX0096 Mexico Announces 2011 Import TRQ for Dairy Preparations 12/20/2010 MX0095 Mexico Announces 2011 TRQ for Milk Powder Imports from 12/20/2010 WTO Members MX0084 Guidelines to Harmonize Import Inspection of Agricultural 11/15/2010 Products MX0076 New Mexican Regulation for Milk and Milk Products 10/18/2010 Useful Mexican Web Sites: Mexico's equivalent to the U.S. Department of Agriculture (SAGARPA) can be found at www.sagarpa.gob.mx , equivalent to the U.S. Department of Commerce (SE) can be found at www.economia.gob.mx and equivalent to the U.S. Food and Drug Administration (SALUD) can be found at www.salud.gob.mx. These web sites are mentioned for the readers' convenience but USDA does NOT in any way endorse, guarantee the accuracy of, or necessarily concur with, the information contained on the mentioned sites. MX1105 2012 Milk Powder TRQ Announced… Limited Effect Forecast on U.S. Page 3 MX1105 2012 Milk Powder TRQ Announced… Limited Effect Forecast on U.S. Page 4
Posted: 23 January 2012

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