Background on the Mexican Government’s Decision
The Mexican federal government has decided to eliminate tariff exemptions on the importation of beef, pork, milk and dairy products, beans, rice, vegetable oils, and processed meats. This move, published in the Diario Oficial de la Federación (DOF) on Wednesday, ends a tariff exemption implemented since 2022 to curb inflation and ensure the availability of essential goods. The decision is part of adjustments to the PACIC (Paquete Contra la Inflación y la Carestía) and Plan México, prioritizing domestic production.
Context and Relevance
Claudia Sheinbaum, the President of Mexico City, explained that the current economic situation allows for a gradual removal of this tariff benefit without causing significant imbalances in the market. This decision aligns with the Renewal Agreement of PACIC and aims to analyze the relevance of maintaining tariff exemptions on certain products, given the inflationary pressures and rising imports from countries without free trade agreements with Mexico.
Priorities in the Plan México and National Development
The government’s decision falls under the Plan México and the National Development 2025-2030, which prioritize strengthening the domestic market, increasing national production, and reducing unnecessary imports. Sheinbaum highlighted that there are sufficient internal supply conditions or productive targets to support the elimination of tariff exemptions for products like beans, rice, and milk.
Product-Specific Measures
For vegetable oils, the decree aims to avoid disrupting the supply chain or diminishing value addition in the national industry. In the case of milk, the measure is linked to a production target of 15,000 million liters annually by 2030, supported by public investments and sector strengthening programs. For beef and pork, the government intends to promote self-sufficiency in food production while maintaining managed access schemes for imports that do not compromise food safety or availability.
Products Losing Tariff Exemptions by 2026
List of Affected Products
- Live cattle (beef and dairy)
- Beef (fresh, chilled, and frozen)
- Pork (fresh, chilled, and frozen)
- Liquid milk in all presentations
- Milk powder and other dairy derivatives
- Dried beans
- Rice
- Soybean oil
- Sunflower, caraway, and cottonseed oils
- Tilapia
- Processed meats and cured meat products
Transition Periods for Importers
The decree establishes transition periods for importers with valid contracts from 2025, allowing them to maintain tariff benefits until March 2026 or, in some cases, until 2027. Furthermore, the Federal Procurator for Consumer Protection (Profeco) and the Federal Commission for Risk Prevention and Health Security (Cofepris) will monitor prices, potential hoarding practices, and adherence to health standards.
