Milk Powder TRQ Announced - Little Effect on U.S. Forecast

A Lastest News about Dairy Products in Mexico

Posted on: 30 Dec 2012

On December 19, 2012, 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.

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: 12/21/2012 GAIN Report Number: MX2097 Mexico Post: Mexico Milk Powder TRQ Announced - Little Effect on U.S. Forecast Report Categories: Dairy and Products Policy and Program Announcements Agriculture in the Economy Agriculture in the News Trade Policy Monitoring Approved By: Adam Branson Prepared By: Gabriel Hernandez Report Highlights: On December 19, 2012, 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. The provisions included in this announcement will be effective on January 1st, 2013. U.S. milk powder will continue to be granted unlimited duty-free access to the Mexican market under NAFTA. 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 19, 2012. SE announced in the Federal Register that Mexico, starting on January 2013, would allow 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 announcement will be in effect on January 1st, 2013 until its cancellation, which should be announced in the Diario Oficial when applicable. H MFN .T.S. Number and Product TRQ 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  Under the WTO framework, this is the amount coming from countries identified as “Most Favored Nation” (MFN) in compliance with the provisions of the list LXXVII-Mexico. The mechanism through which the TRQ will be allocated is: Be Allocation Quantity neficiaries M ation period echanism (MT) Applic A. Public sector businesses supplying m Up to November 30 of each ilk to low-income consumers, Direct 40,000 year. First period D —15 business days from the irect 36,086.4 B. P first business day of January rivate sector businesses that use m of each year. ilk powder as an input and have Second period previously received TRQ allocations. First come, —15 business days from the first serve first business day of August basis. of each year. First period C. Private sector businesses that use m D —15 business days from the irect ilk powder as an input and have not 1,000 first business day of January previously received TRQ allocations. of each year. First come, Second period MX2097 Milk Powder TRQ Announced – Little Effect on U.S. Forecast Page 2 first serve —15 business days from the basis. first business day of August of each year. D. Business parties that hold a Border From the first business day Company Registry located in the State D of each year until the last irect 2,913.6 of Quintana Roo or along the southern business day of February of border region with Guatemala. each year. 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 19, 2012. 2. Implementation Date: January 1, 2013. 3. Validity Period: The validity period of the quota certificates for the beneficiaries, as described, in points A and D will be the last day of December of each year; The validity period of the quota certificates issued for the first period, as indicated in points B and C will be the last day of July of each year; The validity period the quota certificates issued for the second period, as indicated in points B and C will be the last day of December of each year. 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 MX2096 Dairy Blends TRQ Announced – Little Effect on U.S. Forecast 12/21/2012 MX2074 Dairy and Products Annual – High Input Prices Continue to 10/26/2012 Pressure Domestic Production MX2031 New NOMS for Dairy Products May Shift Import Patterns 5/16/2012 MX2028 Dairy and Products Semi-Annual – Mexico Represents Nearly 5/14/2012 MX2097 Milk Powder TRQ Announced – Little Effect on U.S. Forecast Page 3 25 Percent of U.S. Dairy Exports in 2011 MX1106 Dairy Blends TRQ Announced 12/30/2011 MX1105 Milk Powder TRQ Announced 12/30/2011 MX1092 New Meat and Poultry Letterhead Certificates Required 12/6/2011 MX1083 Dairy and Products Annual 11/14/2011 MX1076 Mexico Eliminates Retaliatory Tariffs 10/21/2011 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. MX2097 Milk Powder TRQ Announced – Little Effect on U.S. Forecast Page 4
Posted: 30 December 2012

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