Day 068 - 16 Dec 94 - Page 61


     
     1   MR. MORRIS:  Sorry, I apologise, Q.  If we go to Q, Mexico, they
     2        say at that time not what you just said; they say actually
     3        they do import raw material and other -- sorry, they import
     4        products from the USA.  So how does that explain what you
     5        have previously said?
     6        A.  OK, at that time you could import boneless meat.  You
     7        cannot import boning meat.  You could not import finished
     8        patties.
     9
    10   Q.   So they were importing boning meat or boned meat but not
    11        finished products?
    12        A.  As I said before, you could not import boning from the
    13        US into Mexico at that particular time.
    14
    15   Q.   What is "boning", sorry?
    16        A.  That it contains bone, like a carcass.
    17
    18   Q.   So it would be deboned that would be imported?
    19        A.  That is correct.
    20
    21   Q.   Could Mexico export deboned beef to the USA at that time?
    22        A.  Mexico as a country?
    23
    24   Q.   Yes.
    25        A.  Yes.
    26
    27   Q.   They could?
    28        A.  They could.
    29
    30   Q.   I thought you said before they could not do that until the
    31        NAFTA agreement?
    32        A.  That was live cattle, if I remember correctly, we were
    33        talking about -- let me think about it.  It would be
    34        covered -- NAFTA was approved by different, by the
    35        countries, the one country and then it had to be
    36        reconfirmed by the Congress and, just like you see now with
    37        GATT.  So at this time it was the result of NAFTA.
    38
    39   Q.   I thought NAFTA was brought in on 1st January this year?
    40        A.  That was the final approval.  A lot of modifications
    41        were made prior to that so that it would not have an
    42        immediate effect on both economies.  For example, the
    43        border for the first time before NAFTA, before NAFTA said
    44        we have an agreement it needs to be confirmed and ratified,
    45        but when those decisions were made the borders were opened,
    46        you could not import any type of beef into Mexico.  When
    47        NAFTA was agreed, before it was ratified, the importation
    48        duties went from 20 per cent to nothing.  NAFTA took a long
    49        time to finally be approved and ratified by all the
    50        legal ----- 
    51 
    52   Q.   So, in other words, in Mexico they were buying beef that 
    53        had extra import duties at that time from the USA even
    54        though they have a thriving cattle industry in Mexico?
    55        A.  At that time, and I do not see the specific, hold on,
    56        1992 -----
    57
    58   MR. JUSTICE BELL:  3rd December 1992.
    59        A.  At that time you could import, the border was open, and
    60        they say, "You can import now because of NAFTA, but it will

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