Day 068 - 16 Dec 94 - Page 62


     
     1        cost you 25 per cent".  When NAFTA was ratified by every
     2        single political legal department on January 1st, that was
     3        part of the agreement that there would be no barriers.
     4        That is why it is called a Free Trade Agreement, so no
     5        tariffs, so that 20 per cent, 25 per cent disappeared.
     6
     7   MR. MORRIS:  Say, for example, beef from Mexico could be
     8        exported to the USA?
     9        A.  Now it can, that is correct.
    10
    11   Q.   It could be before you, but you just had to pay a bit
    12        extra?
    13        A.  It could be before -- before when?
    14
    15   Q.   I do not know.  You tell me.
    16
    17   MR. JUSTICE BELL:  Remember, Mr. Morris, that what we are really
    18        concerned with is the possible export from Guatemala and
    19        Costa Rica to the USA of beef from 1,000 countries for
    20        McDonald's in the USA and the possible export of beef from
    21        Brazil to McDonald's anywhere but, specifically, you have
    22        got your hooks into export to one country.  All this may be
    23        jolly interesting.  I can see if you go through several
    24        links of the chain it might be relevant, but remember that
    25        is what we are looking for at the end of the day.
    26
    27   MR. MORRIS:  I know.  (To the witness):  How long has it been
    28        legal to import from Mexico beef from Mexico into the USA,
    29        whatever the tariffs were?
    30        A.  I do not know.
    31
    32   Q.   How long was the pre-NAFTA arrangement when it was 20 per
    33        cent - five years?
    34        A.  A couple of years.
    35
    36   MR. JUSTICE BELL:  Do you know what the situation was before
    37        then?
    38        A.  Yes, coming from Mexico I can explain this in more
    39        detail.  Mexico is not -----
    40
    41   Q.   Do not explain it in much detail.  Just say in one sentence
    42        what the situation was two years before NAFTA, if you know
    43        what it is?
    44        A.  The situation was that it was very expensive, the beef
    45        in Mexico, and so we were looking for an opportunity to
    46        import product, beef, into Mexico from the US or from
    47        Australia.  That was the situation.  We built a plant, this
    48        plant, three years ago, if I remember correctly.
    49
    50   Q.   I am going to stop you there, because you were merely asked 
    51        after NAFTA you could export in Mexico to USA, beef could 
    52        go in the opposite direction without any kind of tariff. 
    53        You said that two years before that there was a tax or
    54        import duty (call it what you will) of 20 to 25 per cent.
    55        What I am asking is before then could you move beef across
    56        the border from Mexico into California or into Texas or the
    57        reverse direction or anywhere into the United States or in
    58        the reverse direction, provided you paid enough duty?
    59        A.  I do not know.  I got involved in this process at the
    60        NAFTA time.

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