Washington DC [US], July 15 (ANI): The US has announced the withdrawal of the 2019 Agreement with Mexico, which had suspended the anti-dumping duty investigation on fresh tomatoes from the country. Along with this withdrawal, the US has imposed an anti-dumping duty of 17.09 percent on most imports of tomatoes from Mexico.
As per the European Commission, dumping is a trade practice of exporting goods at a lower price than the domestic market in order to increase one’s market share internationally. Anti-dumping duties are additional taxes imposed on imported goods by a country to maintain fair prices in its national market.
In a statement on Monday (local time), the US Department of Commerce stated that the withdrawal of the nearly three-decade-old agreement and the imposition of the anti-dumping duty came after the US claimed that “Mexican tomatoes have been sold in the United States at unfair prices.”
“Today, the U.S. Department of Commerce announced it is withdrawing from and terminating the 2019 Agreement Suspending the Antidumping Duty Investigation on Fresh Tomatoes from Mexico (the 2019 Agreement). Commerce is withdrawing under Section XI.B of the 2019 Agreement, which explicitly allows Commerce to take such an action with 90-days’ written notice,” the statement read.
“Now that the 2019 Agreement is terminated, Commerce is issuing an anti-dumping duty order, resulting in duties of 17.09 percent on most imports of tomatoes from Mexico. Anti-dumping duties are calculated to measure the percentage by which Mexican tomatoes have been sold in the United States at unfair prices,” it added.
The move came just days after the US announced a 30 percent tariff on goods from Mexico starting August 1.
US Secretary of Commerce Howard Lutnick also confirmed that the withdrawal decision was taken in line with President Trump’s “trade policies and approach with Mexico.”
“Mexico remains one of our greatest allies, but for far too long our farmers have been crushed by unfair trade practices that undercut pricing on produce like tomatoes. That ends today… This rule change is in line with President Trump’s trade policies and approach with Mexico,” Lutnick said, as per the statement.
According to the US Department of Commerce, since 1996, the US domestic tomato industry has sought protection from what it claims are unfairly priced or dumped Mexican tomato imports. Over the past 27 years, this has led to five suspension agreements—in 1996, 2002, 2008, 2013, and most recently in 2019.
The 2019 agreement aimed to eliminate the harmful impact of Mexican tomato imports on the US market. Under this agreement, Mexican exporters committed to selling tomatoes at or above minimum prices and to reduce dumping by at least 85 percent on each shipment.
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