ITA and Mexican Growers Reach Preliminary Agreement on Tomato Imports
The International Trade Administration and the Mexican tomato industry initialed a draft agreement Feb. 2 that would continue to suspend the antidumping duty investigation of fresh tomatoes from Mexico. Without such an agreement, prices for popular types of tomatoes could increase to almost $5 per pound, industry groups have said. Agreements suspending the AD investigation have been in place since 1996, and renewed in 2002 and 2007. The investigation reached the preliminary stage in 1996 before agreement was reached, finding AD rates of 4.16 to 188.45 percent for Mexican tomato exporters.
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The agreement raises the reference price for Mexican tomato imports, differentiates reference prices based on tomato type, and strengthens enforcement mechanisms in both Mexico and the U.S. “I am pleased that we were able to come to an agreement on fresh tomato imports from Mexico that restores stability and confidence to the U.S. tomato market and meets the requirements of U.S. law,” said Francisco Sanchez, undersecretary of Commerce for International Trade. Suspension agreements must eliminate at least 85 percent of dumping per U.S. antidumping law.
The ITA is accepting comments by Feb. 11 on the draft agreement, which is available here.
Reference Prices Increased and New Categories Added
The draft agreement would raise minimum reference prices for Mexican fresh tomatoes imported into the U.S., and differentiate between different types of tomatoes (previous agreements only had summer and winter prices for all tomato types covered by the scope of the suspended investigation). If the agreement is finalized, new reference prices would be as follows:
| Tomato Type | Winter Price | Summer Price |
|---|---|---|
| Open Field and Adapted Environment | $0.31/lb. (from $0.216) | $0.2458/lb. (from $0.172) |
| Controlled Environment | $0.41/lb. (from $0.216) | $0.3251 (from $0.172) |
| Specialty, Loose | $0.45/lb. (from $0.216) | $0.3568 (from $0.172) |
| Specialty, Packed | $0.59/lb. (from $0.216) | $0.4679 (from $0.172) |
New Enforcement Mechanisms
According to an ITA fact sheet, the agreement would enhance enforcement of tomato imports on both sides of the border. The Mexican government would put into place mechanisms “designed to ensure that signatories to the agreement constitute essentially all Mexican growers/exporters,” an ITA fact sheet said. In the U.S., a requirement would be added that the selling agent responsible for the Mexican party’s first sale in the U.S. must hold a valid license issued pursuant to the Perishable Agricultural Commodities Act of 1930.
Statement by Undersecretary Sanchez is available here.
(See ITT’s Online Archives 12092821 for summary of the ITA’s preliminary decision to terminate the 1997 suspension agreement. See also ITT’s Online Archives 13012520 for summary of a statement by the Mexican tomato industry on the possible effects of the end of the tomato agreement, and 12102214 for a statement by NCBFAA in opposition to the agreement’s termination.)