Mexico levies 20% tariff on U.S. wine

NORTH COAST, March 18, 2009 -- Wine is on the list of 90 products Mexico, the fourth-largest market for U.S. wine, now is tariffing of 10 percent to 45 percent after funding for a pilot cross-border trucking program was dramatically reduced in the recently signed federal budget.

The list, published Tuesday, includes a 20 percent tariff on wine up to 14 percent alcohol by volume.

A spokeswoman for the San Francisco-based industry advocacy group Wine Institute today confirmed through U.S. government officials in Mexico that the tariffs take effect immediately.

"The Wine Institute believes that wine should not be included in trade disputes that don't involve wine," said spokeswoman Gladys Horiuchi. "We encourage our own U.S. government not to involve wine produced in other countries in unrelated trade disputes."

Wine sales to Mexico totaled $23 million in value last year, a decrease of 3 percent from 2007, according to the institute.

A strong driver for that figure is U.S. tourism. More than 100 California brands are distributed there, mainly in coastal areas.

"Trade barriers have held back California wine sales to Mexico in the past when they were in effect, and we certainly believe that this will be the case in the current, already challenging, economic environment," Ms. Horiuchi said.

The institute is working with U.S. officials to get wine removed from Mexico's list.

The tariff list includes Christmas trees, certain vegetables and fruit, broth, milk solids, shampoo and toilet paper.