Although the overall response to the new agreement has been positive, some concerns have been expressed about the impact of border controls. After the agreement was signed after a 30-day delay, reactions to border controls intensified and the APAA described it as a “method of controlling quotas or volume”. Some U.S.-Growers were not optimistic about the agreement and said that the agreements had not been useful in the past and that they would probably not be useful now. The United States and Mexico have resolved a bitter trade dispute over tomatoes, with the United States freezing an anti-dumping investigation into Mexican producers and withdrawing tariffs that could have resulted in bottlenecks and significantly higher prices. Today, the U.S. Department of Commerce reached an agreement with Mexican tomato producers to suspend the ongoing anti-dumping (AD) investigation into fresh tomatoes from Mexico and to end the anti-dumping duties on tomatoes from Mexico. “Today`s success confirms the government`s strong and intelligent approach to negotiating trade agreements,” said Trade Minister Wilbur Ross. “The department`s complaint brought Mexican producers to the negotiating table and resulted in an outcome that protects U.S. tomato producers from unfair trade. It also eliminates great uncertainty for Mexican producers and their workers. The law allows the Ministry of Commerce to suspend an investigation into anti-dumping or countervailing duties if the parties reach an agreement that meets certain legal and political criteria. As part of the agreement on the suspension of tomatoes, the Mexican industry has agreed to reduce production and meet a minimum price floor for fresh tomatoes. Suspension agreements require continuous monitoring to ensure compliance through a process totally separate from NAFTA or USMCA.
The 1996 Tomato Suspension Agreement has been updated and extended three times: 2002, 2008 and 2013. 5. Under this agreement, adjustments to the sale price of signatures are permitted for all state defects, as well as for the quality defects mentioned below. The term “conditional error” must have the same definition as that recognized by the USDA`s Department of Specialized Crops Inspection, On November 26, 2007, some Mexican tomato/export producers, representing a significant percentage of all fresh tomatoes imported into the United States, informed trade in writing of their withdrawal from the 2002 agreement, which is valid 90 days after the date of their withdrawal letter (i.e. February 24, 2008) or earlier, on a discretionary basis. However, the U.S. Department of Commerce said in a statement that the figure was inaccurate because it contained tomatoes on the vine, which are excluded from the border control requirement. “Trade estimates that the correct figure is 66%,” he said. The U.S. tomato industry first filed a case in the United States.