ITA to Determine Whether to Terminate Agreement, AD Investigation on Mexico Tomatoes
The International Trade Administration initiated a changed circumstances review to determine whether to terminate the suspension agreement and antidumping investigation of fresh tomatoes from Mexico (A-201-820) in response to a request by the domestic U.S. industry. Mexican tomato growers are opposing the request. According to the Florida Tomato Exchange, termination of the AD investigation would allow domestic industry to file a new petition for an AD investigation. Comments on the ITA's investigation are due by Sept. 4.
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(In 1996, the ITA initiated and issued the preliminary results of an AD investigation of fresh tomatoes from Mexico. The ITA and Mexican growers then signed an agreement to suspend the investigation. In 2002, Mexican growers withdrew their support for the suspension agreement, and the ITA resumed the investigation. But later that year the ITA signed another agreement with the Mexican growers. In 2007, Mexican growers once again withdrew support, and the investigation resumed. A new agreement suspending the investigation, still in effect, was signed in 2008.)
On June 22, the U.S. petitioners in the AD investigation filed a request for withdrawal of the petition and termination of the AD investigation and suspension agreement. Over the 16 years since the AD investigation was suspended, “U.S. growers have been the victims of gamesmanship and evasive actions by Mexican growers,” said Jimmy Grainger, president of the Florida Tomato Exchange, in a June 25 press release. “It’s time to end the charade and restore fair prices that reflect market reality.”
But Mexican growers are opposed to the action. “The Tomato Suspension Agreement has been in place for 16 years and has successfully settled one of the largest bilateral trade disputes between our two countries,” said Eric Viramontes, CEO of the Mexican Protected Horticulture Association (AMHPAC). “We hope the Department of Commerce will continue to take a very measured approach -- and find that the agreement is in the public interest and should remain in place,” he said.
Withdrawal of the petition would allow would allow domestic tomato growers to file a new petition for an AD investigation, and allow “facts to drive” such a result, said Reggie Brown, executive vice president of the Florida Tomato Exchange. But according to the Mexican growers, the request for withdrawal is an effort to stay afloat by a Florida tomato industry that is increasingly uncompetitive. In the past 16 years, "Florida has done little to evolve with the industry since the agreement was adopted -- with them seeking government protection instead of innovation," Viramontes said.
Florida Tomato Exchange press release available here.
Letter from AMHPAC available here.