MEXICO CITY, MEXICO – Just ahead of the new year, Mexican President Claudia Sheinbaum signed into law an Executive Decree amending previous exemptions on import tariffs for various staple consumer goods, including rice.  The Decree entered into force on January 1, 2026, and now reimposes the most-favored nation (MFN) rate on paddy rice imports at 9 percent ad valorem.

First announced in 2022 by then-President Manuel López Obrador, the suspension of import tariffs aimed to address rising inflation plaguing the country (see USA Rice Daily, May 25, 2022).  The exemptions initially included both paddy and milled rice imports and were extended each year through December 2025.  However, in 2025, Mexico reimposed the MFN rate on milled rice imports (20 percent ad valorem) while keeping paddy imports excluded.

While Mexico, in theory, has reimposed duties on paddy rice imports, it quickly took action to limit the volume of duty-free imports.  On January 5, Mexico’s Ministry of Economy published a tariff rate quota (TRQ) of 200,000 metric tons (MT) for paddy rice imports through the end of 2026. Imports above the TRQ will pay the MFN rate.  U.S. rice is exempt from this quota under trade preferences outlined in the United States-Mexico-Canada Agreement (USMCA).

Mexico historically has used this policy mechanism, referred to as a ‘cupo,’ which is typically invoked under certain supply and demand circumstances, to allow the duty-free import of a limited tonnage of paddy rice from third countries (see USA Rice Daily, January 16, 2018).  The U.S. Department of Agriculture (USDA) estimates Mexico will import nearly 900,000 MT (milled basis) of rice in 2025/2026. 

According to USDA estimates for the 2025/2026 marketing year (MY), the country will import nearly 90 percent of its total consumption, keeping Mexico as the top destination for U.S. rice, mainly for paddy rice shipments, due to the historic duty-free preference achieved under the North American Free Trade Agreement (NAFTA) and its successor, USMCA.  

However, since 2020, policy shifts and increased South American competitiveness have resulted in notable decreases in U.S. market share for both paddy and milled rice imports.  In September 2025, USDA reported U.S. market share for paddy and milled rice in the 2024/25 MY down from 100 percent to 65 percent and 34 to 33 percent, respectively.

“After years of seeing trade policies hinder the preferential access achieved under NAFTA, and now USMCA, it’s encouraging to see Mexico limit imports of duty-free paddy rice,” said Ryan Carwell, CEO of Poinsett Rice & Grain and chair of the USA Rice Western Hemisphere Trade Policy Subcommittee.  “This new environment once again allows U.S. rice to enjoy preferential access to consumers in Mexico.  We look forward to working with our long-standing partners to meet their demand with duty-free treatment and promote the long-term trade relationship ahead of the 2026 USMCA review.”

Published Date: January 9, 2026