The U.S. Department of Commerce indicates the existing agreement with Mexico to protect domestic tomato growers is ineffective, leading to the imposition of antidumping duties starting in July.
Fred Leitz, a fourth-generation tomato grower from Michigan, testified in the initial 2019 International Trade Commission investigation. "This is a year-round problem; now it affects all tomato growers across the country in all regions," he stated.
Leitz informs Brownfield that growers have been urging the commission to examine dumping practices since 1996, with domestic production declining significantly during this period. "The industry is almost non-existent," he remarked. Leitz expresses concern that Mexican importers might absorb the additional duties yet continue to sell tomatoes in the U.S. at prices lower than domestic production costs due to labor cost disparities.
The Florida Tomato Exchange reports that since the inception of suspension agreements in 1996, Mexican tomato imports have increased by nearly 400%, now holding over 70% of the U.S. market. Termination of the 2019 Agreement to Suspend the Antidumping Investigation of Fresh Tomatoes from Mexico will lead to duties exceeding 20% on most Mexican tomato imports.
A 2023 petition from the U.S. tomato industry, advocating for suspension, received backing from over 60 bipartisan Congress members, the American Farm Bureau Federation, various state Farm Bureaus, and 15 fruit and vegetable trade associations nationwide.
Source: Brownfield
