ALEXANDRIA, VA.— The North American Renderers Association (NARA) is calling into question Mexico’s value-added tax on imported feed ingredients, arguing that it’s a violation of the United States-Mexico-Canada Agreement (USMCA). The association submitted its formal comments on Nov. 3 and has requested to testify at the public hearing scheduled for Nov. 17.
According to NARA’s formal comments, the 16% Mexican tax undermines the cross-border value chain that US renderers and their Mexican customers rely on. It is also in violation of the USMCA regarding fair treatment, market access and non-discrimination.
Additionally in its comments, NARA provided actionable recommendations to the Office of the United States Trade Representative (USTR), like improved monitoring and enforcement of compliance, deeper regulatory alignment with Mexico, and increased transparency for trade of rendered byproducts and feed ingredients.
The rendering industry is extensively integrated throughout North America, with US processors, Mexican importers, feed mills and downstream users depending on the seamless flow of trade, according to NARA. By opposing the tax, NARA aims to defend the interests of its members, their customers and the rendering industry.
“As the voice for the rendering industry, NARA is stepping up — not just to talk about trade in general, but to call out what we believe is a clear barrier: Mexico’s tax on feed-ingredient imports, which places US renderers and their Mexican supply-chain partners at a competitive disadvantage,” said Dana Johnson Dowing, senior vice president of International Programs at NARA. “We have made our case in our written submission, and we’ve asked for the opportunity to present directly at the hearing to ensure our industry’s interests are heard.”
NARA plans to attend or follow the public hearing set for later this month and will advise its members and their Mexican partners on new developments.
Source: Pet Food Processing
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