In retaliation for what it perceives as the United States` lack of compliance to ground transportation commitments under the North American Free Trade Agreement (NAFTA), effective today, Mexico will increase import duty taxes on nearly 90 industrial and agricultural products of the United States. The measure is in direct response to last week`s U.S. Senate decision to stop funding a 2-year-old program that allowed Mexican trucks that were in compliance with all applicable environmental and safety regulations to circulate within the U.S.

The Mexican government`s decision to increase the import duties on U.S. imports is a compensatory measure which, in principle, is allowed under NAFTA.

U.S. exporters may see an increased cost in duties ranging from 10 to 45 percent, and averaging approximately 29 percent. Some of the products include certain fruits and vegetables, juice (including concentrated juice), soy sauce, certain soup products, dog and cat food, shampoos, deodorants, toilet paper, plastic identification cards, plastic credit cards (without magnetic tape), coffee machines, sunglasses and pencils.