Mexico Fresh Tomatoes: U.S. & Mexico Finalize Suspension Agreement
The International Trade Administration and Mexican tomato growers finalized an agreement to avert resumption of an antidumping duty investigation of fresh tomatoes from Mexico. The suspension agreement raises minimum prices for Mexican tomatoes, and puts new enforcement measures in place. More than 600 Mexican growers and exporters are signatories. Imports of fresh tomatoes for processing are not covered.
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“This agreement meets the requirements of U.S. antidumping law and provides an effective remedy for the U.S. domestic industry that protects American jobs,” said Paul Piquado, assistant secretary for Import Administration. “It includes important mechanisms that strengthen our ability to enforce the agreement and maintain required coverage of Mexican tomato imports, thereby helping American tomato growers to compete on a level playing field.”
"The agreement provides a framework of stability and certainty that will permit the supply [of tomatoes to] the U.S. market, and the continuing prominent participation in that market, which accounted for more than $1,880 million in annual sales in 2011, as well as direct employment to over 400,000 Mexicans," said a Mexican Secretary of Economy release.
The agreement continues suspension of a 1996 AD duty investigation on fresh tomatoes from Mexico. The investigation reached the preliminary determination stage, and found AD rates of 4.16 to 188.45 percent for Mexican tomato exporters. Agreements suspending the AD duty investigation, and imposition of AD duties, have been in place since 1996, and were renewed in 2002 and 2007.
New minimum reference prices established in the agreement are 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) |
(See ITT's Online Archives 13020427 for summary of the initialing of a draft agreement, and 12092821 for summary of the ITA’s preliminary decision to terminate the 1997 suspension agreement. See also ITT’s Online Archives [Ref: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.)
The new suspension agreement is available here.
Mexican Secretary of Economy statement on the agreement is available here.