Monday August 23, 2010

Candy Exports Get High Tariffs

Washington, DC — A 20 percent duty is being imposed on chewing gum and chocolate destined for Mexican households, according to the NCA.

Dozens of gum and chocolate manufacturers will immediately see the effects of these duties, according to NCA President Larry Graham, who explains some chocolate makers might have to increase prices and even stop exporting as a result of the tariffs.

The association says the duties are the result of a lack of action by the U.S. government to solve a trade disagreement about cross-border trucking. The NCA will continue to advocate for a resolution to the dispute.

“Previously confections from the United States crossed the border duty-free under NAFTA,” Graham explains. “Now millions of dollars of chocolate and gum exports are at risk — $45 million worth of U.S. confectionery exports to Mexico are subject to these new prohibitively high taxes.”