Background on the Mexican Tomato Industry and its US Market Significance
Mexico’s tomato producers and exporters have issued a warning following the US Department of Commerce’s decision to terminate the 2019 Anti-Dumping Agreement Suspension on fresh Mexican tomatoes. The five agricultural producer associations emphasize that there are no countries capable of replacing Mexican tomatoes in the short or medium term for the US market.
Market Overview and Importance
The fresh tomato market in the United States is valued at 6.5 billion pounds, with Mexico supplying 4.3 billion pounds—accounting for 66% of the market, while only 9% comes from other countries in the region. Mexican-grown tomatoes are widely consumed, with two out of three tomatoes either being consumed at home or outside the household.
Impact of Terminated Agreement
With the 2019 agreement terminated, the US Department of Commerce issued an anti-dumping rights order, resulting in a 17.09% tariff on most Mexican tomato imports.
Historical Context of the Conflict
The conflict originated in 1996 when the US fresh tomato industry sought relief, arguing that it was suffering substantial harm from Mexican dumping imports. Over the past 27 years, five suspension agreements have been signed (1996, 2002, 2008, 2013, and 2019) to eliminate the adverse effects of Mexican tomato imports.
Agricultural Producers’ Commitment
The five Mexican tomato producer associations, represented by Germán José Gándara Fernándes (AMHPAC), José María Pablos Ritz (CIDH-CAADES), Walberto Solorio (Baja California Agricultural Council), Rosario Antonio Beltrán Ureta (SPT), and Alberto Cruz Elías Calles (APHYM), have reaffirmed their commitment to work closely with Mexican authorities.
Key Questions and Answers
- What is the significance of this warning from Mexican tomato producers? The warning highlights the critical role of Mexican tomatoes in the US market, emphasizing that no other country can replace them in the near future.
- What led to this conflict between the US and Mexican tomato industries? The dispute began in 1996 when the US fresh tomato industry sought relief from what they considered unfair Mexican dumping imports.
- What is the anti-dumping rights order and tariff? The anti-dumping rights order is a tool used by the US industry to seek relief from harmful effects of imports sold below production costs or national market prices. In this case, a 17.09% tariff has been imposed on most Mexican tomato imports.
- How have the Mexican producers responded to this situation? The five agricultural producer associations have pledged to collaborate with Mexican authorities to find solutions and mechanisms to normalize the situation as soon as possible, ensuring the survival of the national export industry, its field workers, and their families, as well as the entire supply chain dependent on this activity.
