War over fries

Mexican tariffs on U.S. french fries are no small potatoes.

Export of frozen french fries and other frozen potato products to Mexico dropped in value by 50 percent from April to December 2009 after Mexico imposed a 20 percent tariff on frozen potatoes and other U.S. exports.

{mosads}Almost all of the lost business has moved to Canada, which has seen its potato exports to Mexico grow by about 50 percent in the same timeframe, according to John Keeling of the National Potato Council.

Mexico hit the U.S. with tariffs on a variety of manufactured and agricultural products after Congress voted to end funding for a pilot program that allowed Mexican long-haul trucks to travel freely through the U.S.

Labor unions had pressed lawmakers not to allow Mexican trucks access, as provided under the North American Free Trade Agreement. They argued the Mexican trucks would be dangerous on U.S. roads.

Keeling and representatives of other businesses are pressing Congress to reverse itself, noting that potato producers in Washington state, Oregon and Idaho are hurt by the tariffs. About 55 percent of the U.S. exports to Mexico came from those three states.

Sen. Patty Murray (D-Wash.) also has pressed for a settlement.

The U.S. Chamber of Commerce organized a call on Tuesday intended to increase pressure on Congress and the administration. John Murphy, a vice president at the Chamber, also warned of tariffs Brazil is set to impose on U.S. exports because of a different dispute regarding U.S. cotton subsidies.