The U.S. Department of Commerce announced its withdrawal from and termination of the 2019 Agreement Suspending the Antidumping Duty Investigation on Fresh Tomatoes from Mexico on July 14, the final day of the 90-day review period.
With the termination of the agreement, the Commerce Department issued an antidumping duty order, resulting in duties of 17.09% on most imports of tomatoes from Mexico. The department said antidumping duties are calculated to measure the percentage by which Mexican tomatoes have been sold in the U.S. at unfair prices.
“Mexico remains one of our greatest allies, but for far too long our farmers have been crushed by unfair trade practices that undercut pricing on produce like tomatoes. That ends today,” Commerce Secretary Howard Lutnick said in a release. “This rule change is in line with President Trump’s trade policies and approach with Mexico.”
The National Pork Producers Council (NPPC) recently joined over 30 business groups and agricultural organizations to express concern over suspending an antidumping investigation on tomatoes from Mexico, a move that could negatively affect U.S. food prices and American jobs.
The agricultural organizations shared that a decrease in tomato imports resulting from tariffs would lead to food price inflation, with a 25% decrease causing an average 13% price increase for U.S. consumers. Jobs in both the agriculture and food sectors would be adversely affected.
“Nationwide, the import and sale of Mexican tomatoes generate an estimated $8.3 billion in economic impact,” NPPC wrote in Capital Update. “U.S.-owned companies employ nearly 50,000 workers in jobs supporting the movement of tomatoes from Mexico into regions around the country.”
Agricultural groups pointed out in the letter to Lutnick that U.S. growers and distributors import more than 2 million metric tons of tomatoes each year to meet U.S. demand and 90% comes from Mexico. The groups also pointed out that domestic tomato production has decreased because of adverse weather, labor shortages, high production costs and other factors, “making trading partners like Mexico especially crucial.”
Tom Stenzel, executive director of the Controlled Environment Agriculture Alliance shared with The Packer that the past five Tomato Suspension Agreements did not fail, but rather benefited American consumers.
The CEA Alliance expressed disappointment that the Commerce Department chose to proceed with termination of the Tomato Suspension Agreement with Mexico, despite multiple U.S. agriculture and business stakeholders urging renegotiation of the agreement.
