U.S. imposes a 17.5% tariff on Mexican tomatoes
MEXICO CITY — The Secretary of Economy (SE) expressed its disappointment and concern about the decision of the US Department of Commerce to eliminate the application of the Agreement on Suspension of Antidumping Investigation to Mexican Tomato Exports.
It should be noted that as of May 7, 2019, Mexican tomato exporters will face the payment of provisional countervailing duties of 17.5%, which must be covered as a guarantee to be able to export to the United States.
This payment will imply an annual cost of over US$350 million for the Mexican tomato exporter, and it is expected that many small and medium exporters will be unable to cope with this heavy financial burden.
The elimination of the Suspension Agreement will mean that, as of today, the Department of Commerce of that country will reactivate the anti-dumping investigation suspended since 1996, and its final determination must be issued no later than September 19, 2019
In addition, the United States International Trade Commission will issue its final determination of injury to the industry 45 days later, which could happen around November 1, 2019.
This will define either the definitive application of anti-dumping taxes on the export of tomatoes to the United States, or it will return to free trade in this product.
The Suspension Agreement, which was in effect since 1996, successfully regulated Mexican exports of tomatoes for 23 years to the US market, while allowing Mexican producers to take advantage of our country’s comparative advantages for tomato production.