Mexico and U.S. reach agreement on tomato; 'anti-dumping' suspended

Mexico and the United States closed an agreement on the export of Mexican tomato to its northern neighbor that will suspend the investigation for unfair trade that U.S. authorities applied to this product, the Mexican government said Wednesday.

The Mexican Undersecretary for North America of the SRE, Jesús Seade, also confirmed this agreement; the content of the agreement is not yet detailed.
The Mexican Undersecretary for North America of the SRE, Jesús Seade, also confirmed this agreement; the content of the agreement is not yet detailed.

In the last minutes of August 20, tomato producers in Mexico reached an agreement with the U.S. Department of Commerce, which will allow suspending the investigation 'anti-dumping'," said on Twitter the Mexican Secretary of Economy, Graciela Marquez.

The Mexican official added that this agreement is "good news because it will keep the market open" for Mexican tomato exports to the United States.

The Mexican Undersecretary for North America of the Secretariat of Foreign Affairs (SRE), Jesus Seade, also confirmed this agreement and congratulated the Mexican tomato producers, who recognized his "infinite tenacity to achieve an agreement in this important sector of Mexico-EU trade.

He also highlighted the "central work" done by the head of the Office of the President of Mexico, Alfonso Romo, the Secretary of Agriculture, Victor Villalobos, and the Mexican ambassador to the United States, Martha Barcena.

None of the parties has so far detailed the content of the agreement reached.

The conflict over the Mexican tomato trade began on May 7, when Washington imposed tariffs of 17.5% on tomato growers in Mexico.

At the request of the Florida tomato producers, the U.S. government lifted the agreement that has suspended quotas on Mexican tomatoes since 1996, known as the Tomato Suspension Agreement.

This agreement facilitated the export of the tomato in exchange for Mexican producers not selling their product below a minimum price established by the United States.

Although it was a pact between the U.S. authorities and the Mexican producers, the Government of Mexico entered into the negotiation.

In this sense, the Secretary of Economy, Graciela Marquez, maintained various contacts with the U.S. Secretary of Commerce, Wilbur Ross, to pressure him to reach an agreement with producers in Mexico.

The Mexican government considered that the United States was imposing "extreme conditions" on the Mexican tomato, as it was intended to impose strict inspections of the product at the border that delayed for days the export.

According to figures from the National Agricultural Council (Consejo Nacional Agropecuario, CNA), trade of Mexican tomatoes to the United States amounted to 2,000 million dollars in 2018.

By Mexicanist Source EFE

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