Mexico slaps tariffs on US products in dispute

MEXICO CITY (AFP) — Mexico on Monday said it would place tariffs on nearly 90 US products after Washington canceled a program that allowed some trucks from Mexico to operate in the United States.

There is to be an "increase in customs duty on almost 90 industrial and agricultural products," Economy Minister Gerardo Ruiz Mateos said in a statement.

Ruiz said the increase would represent some 2.4 billion dollars, but did not name the products.

The US Senate decision Tuesday to cancel the program violated a section of the North American Free Trade Agreement that was supposed to have opened cross-border trucking years ago, Ruiz said.

"We consider that this action of the United States is mistaken, protectionist and clearly in violation of the (NAFTA) treaty," Ruiz said.

The move drew a sharp rebuke from US Senator John McCain, who said he regretted Mexico's decision and also lashed out at US President Barack Obama and lawmakers for backing "protectionist" policies.

"I deeply regret the action taken by the Mexican government and the harm it may cause to American businesses," said McCain, who lost his bid for the presidency in 2008 to Obama.

"Unfortunately, this is a predictable reaction by the Mexican government to a policy that now puts the United States in clear violation of the North American Free Trade Agreement," he added.

"We must take steps to prevent escalation of further protectionist measures -- actions that only serve to harm American business during these tough economic times when these businesses need a worldwide marketplace to prosper."

The White House said Monday that it sought to work with US lawmakers to create a new cross-border trucking project with Mexico.

White House spokesman Robert Gibbs said US lawmakers and officials, along with Mexican officials, would work on legislation for a new plan "that will meet the legitimate concerns of Congress and our NAFTA commitments."

Mexico announced the retaliatory measure nine days before an official visit south of the border by US Secretary of State Hillary Clinton.