Voluntary Report - public distribution **Date:** 12/16/2002

**GAIN Report Number:** MX2171

MX2171

**Mexico**

**Grain and Feed**

**Mexico Announces Unilateral TRQs on Feed Grains**

2002

**Approved by:**

![](media/image1.wmf)William L. Brant

#### U. S. Embassy

**Prepared by:**

Benjamin Juarez

**Report Highlights:**

On December 16, 2002, the Secretariat of Economy published TRQs for feed
grains such as wheat (durum) and other types of wheat, as well as for
alfalfa, alfalfa meal, and straw and cereals husk. This is a non-NAFTA
TRQ, which is available to all countries, has a zero import duty and no
assigned volume limit.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Mexico \[MX1\], \[MX\]

**Introduction:** This report summarizes an announcement published in
Mexico's "*Diario Oficial*" (Federal Register) on December 16, 2002.

**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.

**FAS/Mexico's Executive Summary:** The Secretariat of Economy (SE)
announced on December 16, 2002, in the *Diario Oficial* (Mexican Federal
Register) a unilateral (i.e., worldwide) 2003 TRQ for imported feed
grains, including wheat (durum); other (wheat); straw and cereal husk;
alfalfa and alfalfa meal and others (forage seeds, except meals or
flour). This TRQ will be valid until December 31, 2003. The SE will
assign the grain feed TRQ by direct allocation to the animal feed and
livestock companies that received the 2002 NAFTA tariff rate corn quota.
Also, the Cattlemen Regional Unions that fulfill the requirements of the
Law of Cattle Organizations will be able to receive this TRQ, when they
provide the documents required in the annex of this notice. It should be
noted that the announcement does not indicate the volume of the TRQ, but
rather specifies that it will depend on the import needs of imported
grain and on the domestic availability of corn and other feed grains.

  ------------ ----------------------------------------- ------------------
  **H.S.       **Description**                           **TRQ 2003**
  Code**                                                 

  1001.90.01   Wheat (durum)                             According to needs
                                                         of import of
                                                         grains and
                                                         availability of
                                                         grains in the
                                                         region (corn and
                                                         other forage ones)

  1001.90.99   Other (wheat)                             

  1213.00.01   Straw and raw cereals husk                

  1214.10.01   Alfalfa meal and alfalfa pellets          

  1214.90.01   Alfalfa                                   

  1214.90.99   Other (forage seeds, except meal or       
               pellets)                                  
  ------------ ----------------------------------------- ------------------

**Related Trade Issues:** According to the industry, this type of TRQ
has been in existence for several years but has never been used. This
TRQ, however, could also be considered an alternative supply source
through which Mexico could meet its increasing demand for feed grains.
Despite Mexico's inability to expand its feed grain production,
especially for corn and sorghum, there is continued political pressure
from several groups against the granting of additional TRQs for U.S.
corn. In 2002, for example, Mexican legislators approved a 10-percent
reduction in the volume of TRQs for U.S. corn, compared to the volume
granted in 2001. Therefore, if in 2003, the SE continues to respond to
political pressure to not issue enough over- quota corn TRQs to meet
demand, the animal feed and livestock industries have the option to
import additional feed grains through a unilateral TRQ, which has no
import duty or volume limit assigned to it.

**Title:** Notice to announce the unilateral tariff rate quota for feed
grains.

**Important Dates:**

**1. Publication Date:** December 16, 2002

**2. Effective Date:** Until December 31, 2003

**Agency in Charge:** Secretariat of Economy

For More Information:

*Fax:* 011-52-5080-2532

*Email:* AgMexico@fas.usda.gov

###### Internet Connections

*FAS Mexico Web Site:* We are available at http://www.atomexico.gob.mx
or visit our headquarter\'s home page at http://www.fas.usda.gov for a
complete selection of FAS\' worldwide agricultural reporting.

*Useful Mexican Web Sites:* Mexico\'s equivalent of the Department of
Agriculture (SAGARPA) can be found at www.sagarpa.gob.mx and Mexico\'s
equivalent of the Department of Commerce (SE) can be found at
[www.economia.gob.mx](http://www.economia.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.