Mexico Starts Antidumping Investigation on US Pork Imports

The Ministry of Economy (SE) initiated an administrative investigation into unfair trade practices regarding imports of pork leg and shoulder originating from the United States. The probe covers price discrimination, or dumping, and illegal subsidies, following a petition filed by national producers.

SE noted the investigation was promoted by national producers, including Alimentos Kowi, Alimentos Soles, Comercializadora Porcícola Mexicana, Proteína Animal, and Sonora Agropecuaria. According to the resolution published in the Federal Official Gazette (DOF), the investigation targets imports entering under tariff codes 0203.12.01, 0203.19.99, 0203.22.01, and 0203.29.99, regardless of the country of provenance. SE accepted the petition after the applicants, who represent over 65% of the national production in Federal Inspection Type (TIF) facilities, argued that US imports have caused material damage to the domestic industry.

SE established the period from Jan. 1, 2024 to Dec. 31, 2024, as the investigation period to determine the existence of dumping and subsidies. Additionally, the authority will analyze the economic damage caused to the domestic industry over a broader period, spanning from Jan. 1, 2022, to Dec. 31, 2024.

The resolution explicitly warns of the possibility of retroactive measures. "SE may apply definitive compensatory quotas that, where appropriate, are imposed on products that have been declared for consumption up to 90 days before the date of application of the provisional measures," the document states.

Allegations of Subsidies and Dumping

Petitioners argue that US producers benefit from a network of federal and state subsidies that distort market prices. The investigation will examine federal programs managed by the US Department of Agriculture (USDA), including the Meat and Poultry Processing Expansion Program (MPPEP) and various COVID-19 relief measures such as the Coronavirus Food Assistance Program (CFAP).

Furthermore, the probe highlights subsidies granted upstream in the supply chain, specifically to producers of corn and soy, the primary feed inputs for pork. The resolution notes that subsidies for these grains flow down to pork packers, artificially reducing production costs. The investigation also targets specific state-level subsidy programs in key pork-producing states, including Iowa, Minnesota, North Carolina, Illinois, and Indiana.

SE highlights that imports from the United States account for 86% of total pork leg and shoulder imports into Mexico. The petitioners provided data suggesting that US import prices were significantly undervalued compared to national prices, with margins of undervaluation averaging 32.1% during the analyzed period. Interested parties, including US exporters and the US government, have a period of 23 business days to respond to the official forms and submit evidence.