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NAFTA AGRICULTURE
FACT SHEET:
Fresh Melons
TREATMENT OF TARIFFS:
Upon enactment of the NAFTA on January 1, 1994, several new U.S. tariff lines were created for cantaloupe, watermelon, and other melons to allow the maximum transition times for more sensitive periods, yet grant Mexico improved access during its main shipping season.
One import period for watermelon is covered by a special agricultural safeguard, which is designed as a seasonal tariff-rate quota. Under the safeguard, a certain quantity of imports from Mexico enters at the NAFTA preferential rate, while any amount in excess is assessed the lower of the current MFN rate or the MFN rate in place when the quantity is reached.
This quota quantity grows at a compounded 3-percent annual rate over the transition period. The quantity for watermelons for May 1-Sept. 30, 1998 is 61,228 metric tons.
Mexico matched the U.S. tariff line changes and phaseout periods for some of the different seasons.
The U.S. phase-out schedules for melons is as follows:
Item Season Base tariff Phaseout Safeguard base 1/
Cantaloupe Jan. 1-May 15 Free Immediately N/A
Cantaloupe May 16-July 31 35% 15 years N/A
Cantaloupe Aug. 1-Sept. 15 20% 10 years N/A
Cantaloupe Sept. 16-Nov. 30 35% 15 years N/A
Cantaloupe Dec. 1-Dec. 31 35% Immediately N/A
Watermelon Dec. 1-Mar. 31 20% Immediately (GSP) N/A
Watermelon Apr. 1-Apr. 30 20% Immediately N/A
Watermelon May 1-Sept. 30 20% 10 years 54,400 mt
Watermelon Oct. 1-Nov. 30 20% Immediately N/A
Other melons Dec. 1-Apr. 30 8.5% 5 years 2/ N/A
Other melons May 1-May 31 8.5% 10 years N/A
Other melons June 1-Nov. 30 35% 15 years N/A
1/ Will increase by 3
percent annually, compounded. Current MFN rates are below the
base tariff rates. N/A - not applicable.
2/ Duty free on January 1, 1998.
TREATMENT OF QUANTITATIVE RESTRICTIONS:
There are no quantitative restrictions affecting trade in melons.
U.S. Melon Trade with Mexico
Cantaloupe
Calendar Year |
1990 |
1991 |
1992 |
1993 |
1994 |
1995 |
1996 |
Export Value |
105 |
860 |
597 |
657 |
515 |
197 |
308 |
Export Volume |
394 |
3,574 |
2,001 |
2,025 |
1,832 |
398 |
627 |
Import Value |
53,157 |
55,061 |
35,521 |
17,691 |
19,182 |
28,827 |
46,007 |
Import Volume |
146,748 |
163,641 |
100,229 |
68,275 |
66,840 |
102,027 |
146,146 |
Value in $1,000; volume in metric tons.
Watermelon
Calendar Year |
1990 |
1991 |
1992 |
1993 |
1994 |
1995 |
1996 |
Export Value |
55 |
58 |
53 |
51 |
337 |
104 |
53 |
Export Volume |
401 |
409 |
341 |
370 |
1,669 |
511 |
247 |
Import Value |
17,262 |
19,161 |
17,731 |
15,776 |
32,327 |
41,622 |
46,007 |
Import Volume |
99,156 |
100,521 |
81,763 |
84,486 |
106,706 |
135,971 |
192,487 |
Value in $1,000; volume in metric tons.
Other Melons
Calendar Year |
1990 |
1991 |
1992 |
1993 |
1994 |
1995 |
1996 |
Export Value |
36 |
143 |
246 |
778 |
937 |
330 |
114 |
Export Volume |
154 |
403 |
779 |
2,323 |
2,269 |
1,098 |
316 |
Import Value |
16,612 |
24,137 |
15,670 |
15,645 |
14,450 |
16,249 |
19,960 |
Import Volume |
54,437 |
75,285 |
46,576 |
47,173 |
44,002 |
48,254 |
60,867 |
Value in $1,000; volume in metric tons.
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