ITA Takes First Step Toward Ending Mexican Tomato Agreement
The International Trade Administration said it intends to terminate the agreement suspending the antidumping investigation on tomatoes from Mexico, in the preliminary results of its changed circumstances review. The ITA preliminarily found that 85 percent of domestic producers support ending the suspension agreement. Termination of the agreement in the final results of the ITA’s changed circumstances review would pave the way for a new antidumping investigation on tomatoes from Mexico and the possible imposition of duties.
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But on the same day that the ITA signed its preliminary results, Sept. 27, a group of 54 tomato growers, Congressmen, and customs brokers submitted letters contesting the assertion that 85 percent of domestic producers support ending the agreement. The Fresh Produce Association of the Americas also submitted a letter urging the ITA to “ignore the onslaught of letters in mid-September from Congressmen from Florida demanding termination of the tomato suspension agreement and anti-dumping investigation….”
“Terminating the successful tomato agreement with Mexico could lead to a trade war with one of America’s biggest trading partners if Mexico decides to target American agricultural exports for retribution,” the FPAA said. “A decision with such broad consequences must not be rushed in a few short weeks before Election Day."
The Mexican Secretary of Economy, which earlier this month said Florida growers are exploiting the U.S. political climate to impose duties, said Mexico is “deeply concerned” about the ITA’s decision. The ITA didn’t consider the negative impact on prices for U.S. consumers and employment on both sides of the border, it said.
(See ITT’s Online Archives 12082024 for summary of the initiation of this changed circumstances review. See also ITT’s Online Archives 12091835 for summary of the Mexican Secretary of Economy’s statement on Florida growers exploiting the elections.)
The Mexican Secretary of Economy’s statement is available here.
Email documents@brokerpower.com for a copy of the submissions by the group of 54 tomato growers, Congressman and customs brokers, or a copy of the FPAA submission. The preliminary results have been signed, but not yet published in the Federal Register. Upon publication, another International Trade Today will direct readers to the preliminary results.