Agreement on tomato exports between Mexico and US starts on September 19

Following the agreement signed on August 20, 2019 between Mexican producers / exporters and the U.S. Department of Commerce (USDOC) to suspend the anti-dumping investigation on tomato exports, initiated in 1996 and resumed in February 2019, both parties have accepted the conduct of quality inspections at the border and the increase in reference prices for specialty tomatoes (such as cherry or datterino tomatoes). In addition, the agreement also established that the price of organic tomatoes will be 40% higher than that of conventional tomatoes.

The new agreement will enter into force on September 19 and will be  reviewed on September 2024. Thus, tomato exports can be made without the payment of additional tariffs and Mexican exporters will be refunded the tariff increase that was set on the sale of tomatoes since the investigation was restarted on May 7.

The revocation of the agreement in force since 2013 and the entry into force of the compensatory quota occurred when the winter export season was already in its final stage, so this measure didn't have a significant impact on the export prices of Mexican tomato, nor on wholesalers and consumers in the US market.

According to USDA data, the volume of Mexican tomatoes exported to the United States during the 15 weeks after the imposition of the compensatory quota (between May 7 and August 17, 2019) grew by 4.1% over the volume exported in the same period of 2018.

The new agreement will continue to give certainty to the Mexican tomato's access to the US market, allowing producers to continue taking advantage of Mexico's comparative advantages in the production of this vegetable.

 

Source: eleconomista.com.mx 


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