May 7, 2019
Report: US to impose 17.5 percent tariff on Mexican tomato imports

There has been much discussion surrounding the withdrawal of the Tomato Suspension Agreement in recent months and on May 7, 90 days after the initial termination announcement, Reuters reported the United States will impose a 17.5 percent tariff on Mexican tomato imports.

As the two countries were unable to renew a 2013 agreement that suspended a U.S. anti-dumping investigation, a Mexican official said that the new rules will be starting May 7.

Here’s more from the Reuters story:

“The U.S. Commerce Department said in early February that the United States would resume an anti-dumping investigation into Mexican tomatoes, withdrawing from a so-called suspension agreement that halted the anti-dumping case as long as Mexican producers sold their tomatoes above a pre-determined price. U.S. growers and lawmakers say that deal has failed.

At the time, Commerce said it was giving the required 90-day notice before terminating the six-year-old agreement.

“As of tomorrow a tariff of 17.5 percent will be applied on the value of the product … Mexican exporters will be affected, it’s going to affect their financial flows but that is going to be directly transferred to U.S. consumers,” said Mexican Deputy Economy Minister Luz Maria de la Mora.

She added that the U.S. measures will remain in place until a new suspension agreement is reached.

“We’re very disappointed but the good news is that negotiations continue, looking for a solution. And we hope that in the coming weeks we can in fact reach an agreement,” said de la Mora.

Mexico exports around $2 billion worth of tomatoes to the United States annually, according to de la Mora.

A trade war over tomatoes was averted twice since the 1990s, most recently in the 2013 deal that put a price floor on Mexican tomatoes sold in the United States while barring U.S. growers from pursuing anti-dumping charges against Mexican exporters.”

To view the complete Reuters story, visit here.




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