Background on the Issue
The Mexican tomato export industry has been facing challenges due to a long-standing anti-dumping investigation initiated by some US tomato producers in 1996. These producers accused Mexican counterparts of unfair trade practices. Despite multiple suspensions, including one in 2019, the issue has resurfaced with a new anti-dumping tariff of 17.09% imposed by the US on Mexican tomato imports starting from a certain date.
Mexican Government and Industry’s Stance
The Mexican Secretariats of Economy (SE) and Agriculture (SADER), along with Mexican tomato producers, have firmly stated that without any dumping practices, the Mexican tomatoes exported to the US market are highly competitive and irreplaceable.
- Quality of Mexican Tomatoes: The success of Mexican tomatoes in the US market is attributed to their quality, not any unfair trade practices.
- Market Dependency: Approximately two-thirds of fresh tomatoes consumed in the US come from Mexico, making it impossible to replace them with alternatives.
- Previous Negotiations: The Mexican government supported tomato producers in negotiations with their US counterparts for the past 90 days, but constructive proposals were not accepted due to political reasons.
Both secretariats emphasized their commitment to finding a solution and ensuring that Mexican producers’ interests are protected. They also pledged to continue supporting the development of new international markets based on product quality and agroindustrial processing schemes that add value.
Historical Context and Industry Impact
The anti-dumping investigation dates back to 1996 when some US producers accused Mexican counterparts of unfair trade practices. Although these accusations do not represent the majority of US tomato production, they have led to ongoing trade tensions. The Mexican tomato industry has been growing steadily over the past 120 years, driven by innovation and hard work.
- Market Dominance: Mexican tomatoes account for 91% of the US market, totaling 6.5 billion pounds annually.
- Quality and Preference: Mexican producers have modernized the sector, creating a competitive and high-quality product that has gained consumer preference.
- Production Dependency: Today, two out of every three tomatoes consumed in the US or used outside the home are grown and produced by Mexican hands.
Key Questions and Answers
- What is the issue? The US has imposed a 17.09% anti-dumping tariff on Mexican tomato imports, affecting the competitiveness of Mexican producers in the US market.
- Why are Mexican tomatoes considered irreplaceable? The quality of Mexican tomatoes, coupled with their market dominance in the US, makes them irreplaceable.
- What is the Mexican government’s role? The Mexican Secretariats of Economy and Agriculture are negotiating with the US to protect Mexican producers’ interests and find a solution.
- What is the historical context? The anti-dumping investigation began in 1996, with accusations of unfair trade practices by some US producers against Mexican counterparts.
