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📦 Potash that is a product of Mexico, as provided for in U.S. note 2(c) to this subchapter

Potash that is a product of Mexico, as provided for in U.S. note 2(c) to this subchapter

HS Code:

📦

Overview

Potash, a key fertilizer component primarily composed of potassium chloride, is an essential agricultural input used to enhance crop yield and quality. While Mexico is not traditionally a major global producer of potash compared to countries like Canada, Russia, or Belarus, it engages in the trade of potash products, often through imports for domestic agricultural use or re-export. Under U.S. note 2(c) to the relevant subchapter, potash from Mexico may be subject to specific tariff classifications and trade agreements, such as those under the USMCA (United States-Mexico-Canada Agreement), which replaced NAFTA. This classification often falls under HS Code 3104 (Mineral or chemical fertilizers, potassic), covering various forms of potash.

Total Trade Volume

Approximately $50 million USD in trade value for potash-related products involving Mexico

Data from 2022

Source

United Nations Comtrade Database and U.S. International Trade Commission (USITC) data

Tariff Analysis

Average Rate

0% under USMCA for qualifying goods

Highest Rate

2.5% for non-preferential trade partners under WTO MFN rates (if applicable)

Lowest Rate

0% under free trade agreements like USMCA

Common Restrictions

  • Import quotas for specific potash categories in certain markets
  • Environmental regulations on mining and transportation
  • Certification requirements for agricultural use

Market Trends

Rising demand for fertilizers in Latin America

Increased import activity in Mexico to meet domestic and regional agricultural needs

2021-2022

Global supply chain disruptions due to geopolitical tensions

Higher potash prices globally, prompting Mexico to seek alternative suppliers beyond traditional partners

2022

Shift toward sustainable agriculture

Growing interest in balanced fertilizer use, affecting potash demand patterns in Mexico

2020-2023

Recent Developments

USMCA Trade Agreement Updates

Revisions and clarifications under the USMCA have streamlined tariff-free access for potash trade between Mexico, the U.S., and Canada, reinforcing regional supply chains.

July 2022

Reduced trade barriers, potentially increasing Mexico's role as a transit hub for potash in North America.

Global Potash Supply Constraints

Sanctions on major potash exporters like Belarus and Russia have led to supply shortages, prompting Mexico to diversify import sources and explore local production feasibility.

March 2022

Increased costs for Mexican farmers and potential investment in domestic potash resources.

Agricultural Policy Reforms in Mexico

The Mexican government has introduced subsidies for fertilizer use to boost agricultural productivity, indirectly supporting potash imports.

January 2023

Likely to sustain or increase potash trade volumes in the short term.