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SEATTLE -- After struggling under Mexican tariffs on U.S. exports for 18 months, Washington state growers are looking to Washington, D.C., and asking, "Where's the fix?"
Transportation Secretary Ray LaHood had few answers for frustrated farmers at a meeting arranged by Sen. Patty Murray in Seattle on Wednesday, said Matt Harris, trade director for the Moses Lake-based Washington State Potato Commission.
"LaHood did talk about some of the situation, but not in any detail or length," said Harris, who attended the meeting. "It was more of a listening session for him. ... As an industry, we want to hear more -- how we can move this issue along to where a fix can come about and how we can support something."
The Mexican government imposed tariffs in April 2009 on a lengthy list of American exports after Congress killed a pilot program that allowed a limited number of Mexican trucks full access to U.S. highways.
The tariff in part contributed to a $19.7 million decline in the value of Washington agricultural products exported to Mexico last year compared with 2008, according to the Washington Department of Agriculture.
The initial list included such key Washington crops as potatoes and cherries, causing a $28 million loss to the state in potato exports, including $14 million in frozen potatoes.
Mexico is the No. 2 international export market for Washington's frozen potatoes.
The Mexican government adjusted the tariff list Aug. 18 to reduce the potato tariff to 5 percent, but added apples to the list with a 20 percent tariff.
David Douglas, co-owner of Douglas Fruit in Pasco, said Mexico is the top export market for Washington apples, including red and golden delicious and gala varieties.
Douglas did not attend the meeting, but is anxious to see the trade dispute resolved.
"We certainly would like to see them deal with this trucking issue and do away with these punitive tariffs," Douglas said.
Apples are Washington's top agricultural commodity, and the state ranks No. 1 in apple production nationwide, according to the state agriculture department.
The department valued apple production at nearly $1.3 billion in 2008, the last year data was available.
U.S. Rep. Doc Hastings' office reported in August when the tariff was imposed that Washington apple growers could face a $44 million annual loss, on top of the $28 million for potatoes and $25 million for pears, cherries and apricots.
Hastings, R-Wash., said in a written statement that his communications with the Obama administration to resolve the trade dispute have gone nowhere.
"Almost a year and a half later, there is no end in sight, no plan, and little public effort by the administration to protect the number one industry in our entire state," he said. "It's time for this administration to stand with our farmers -- not special interest groups."
Murray, a Democrat running for re-election in a hotly contested race, included language in a Senate spending bill that calls on the Obama administration to come up with a plan to end retaliatory tariffs by Oct. 1.
She said in a written statement Wednesday that she arranged the meeting with LaHood so he could hear firsthand how Washington growers are being harmed by the tariffs.
"I have been pushing the administration on this issue for months, but I am hoping today's meeting will help them understand the urgency of the situation," Murray said. "I am extremely frustrated that this problem still has not been solved, and I am going to continue pushing both the Obama administration and the Mexican government to make the necessary changes that will allow Washington state farmers to once again compete on a level playing field."
Dino Rossi, Murray's Republican opponent, said Murray's actions were "too little, too late" and faulted her for voting for the 2009 Omnibus Appropriations Act that included an amendment killing the pilot program.
"Unfortunately, Sen. Murray's actions are going to cost Washington farmers millions of dollars," Rossi said.
Rossi said he would restore the pilot program if that's what it takes to lift the tariffs.
"Clearly we have to make sure the Mexican trucks are safe in the first place, but that's what the pilot program was about," he said.
Harris said Murray has been a strong advocate for potato growers, and that he hoped the meeting she arranged with LaHood would result in a solution to the problem.
"She understands that these tariffs have torn apart our industry and hurt our workers and our livelihoods," he said. "We really appreciate her bringing Secretary LaHood here today to hear our concerns."
Even though potato growers have seen a reduced tariff since August, Harris said it remains to be seen how the industry rebounds after being hit with the 20 percent tariff last year, and whether the reduction will stay in place.
"Mexico changed the schedule, but they can change it back if they choose," he said. "The problem exists. That's what is concerning -- that even though there's a reduction they can come back and change it."
-- Michelle Dupler: 509-582-1543; mdupler@tricityherald.com
