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DeFazio protests Mexican tariffs on Oregon products

Mexico truck ban sparks Oregon backlash

05:09 PM PDT on Friday, March 20, 2009

By ERIC ADAMS and WAYNE HAVRELLY, kgw.com

Mexico slaps tariffs on Oregon goods

PORTLAND, Ore. -- Oregon Congressman Peter DeFazio has written President Obama, urging action against a recent move by the Mexican government that could cost Oregon jobs and millions in exports.

Mexico just slapped big tariffs on 90 different U.S. products, including many exported from the Pacific Northwest. The duties include 20 percent tariffs on Christmas trees and fruits like pears and cherries. There's even a 20 percent tariff on Oregon wines.

DeFazio claims the $2.4 billion in "retaliatory tariffs" are illegal under the North American Free Trade Agreement and were retaliation against a provision in the economic stimulus bill passed by Congress that ended the Mexican Cross Boarder Trucking Pilot Program.

 Details: Read DeFazio's letter

The ban prevents Mexican semi-trucks from driving into the United States. Mexican officials were very upset with the ban.

"These tariffs are illegal and should be treated as nothing more than political gamesmanship. Mexico has no legal grounds to implement any of these tariffs," DeFazio wrote to Obama.

However, DeFazio himself helped draft the truck ban legislation. He told KGW the provision was based on road safety issues -- not economic protectionism.

DeFazio said he has led bipartisan efforts to end the trucking program over the last two years and was due to "Mexico's less-stringent regulations on hours of service, vehicle safety and driver training and licensing."

AP photo

“Mexico runs a massive trade surplus with the U.S. They are more than biting the hand that feeds them," DeFazio said.

The congressmen claims Mexico targeted specific Democratic leaders and their states, including Oregon, that "led the charge" to halt the cross border safety program.

NAFTA trade officials determined in 2001 that it was illegal for the U.S. to refuse to permit entry to Mexican trucks -- but that the U.S. retained the right to uphold its own transportation safety measures.

Many Oregon business leaders worry other countries could follow Mexico and put up new trade barriers with the U.S. The U.S. could in turn respond by putting up it’s own trade barriers.

If a nasty international trade war ensues, many economists believe it would push the world deeper into the recession and possibly create another great depression.

Last year Mexico spent $748 million on goods from Oregon.

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