EFFECT OF THE TARIFFS IN THE COMPETITIVENESS OF THE MEXICAN PORK INDUSTRY

Abstract

The national pork producers demand the application of tariffs to the imports of originating meat pig of the EUA arguing a serious damage to the industry whereas, on the other hand, the governmental authorities reject this option, reason why the evaluation of the impact of its implantation like an alternative is justified that it causes to improve the competitiveness of the national pork industry. In order to analyze this effect a model of partial balance was used Armington type, using the data of 2006 of the international trade of pig meat. The results indicate that if a tariff of 20 % to the originating meat of the United States of America and Canada in the 2008 had been applied the demand by Mexico of its meat would have lowered 9.6 and 27.5 %, whereas the demand of national meat would have increased 6.4%. In addition, the production would have risen in 4.5 % and the internal price raised 12.5 %. By another part, if the tariff had been only applied to the United States, the demand in Mexico of originating meat of this country would have lowered  23.4 %, the one of Canada and the national would have increased 5.4 and 3.4 % respectively, whereas the 2.4 % production would have been increased and price 6.6 %. It is expected that the 5.0% tariff imposed by Mexico in 2010 to purchases of pork from the United States of America generate changes few significant to the domestic market. Reason why, if tariffs are applied to the meat of EUA pig and Canada when its price is smaller to the national production costs the increase in the internal price would help the national pork industry to be competitive.