Yesterday, the U.S. Department of Commerce announced its intent to withdraw from the 2019 Agreement Suspending the Antidumping Investigation on Fresh Tomatoes from Mexico, with termination effective in 90 days. The current agreement has failed to protect U.S. tomato growers from unfairly priced Mexican imports, as Commerce has been flooded with comments from them urging its termination. This action will allow U.S. tomato growers to compete fairly in the marketplace.
With the termination of this agreement, Commerce will institute an antidumping duty order on July 14, 2025, resulting in duties of 20.91% on most imports of tomatoes from Mexico.
The strict enforcement of U.S. trade law is a primary focus of the Trump Administration. Commerce’s Enforcement and Compliance unit within the International Trade Administration is responsible for vigorously enforcing U.S. trade laws and does so based on factual evidence provided on the record. Commerce currently maintains 734 antidumping and countervailing duty orders which provide relief to American companies and industries impacted by unfair trade.
Related Article: Tomato Prices Might Rise 50%
Antidumping and countervailing duty orders provide American businesses and workers with a mechanism to seek relief from the harmful effects of the unfair pricing of imports into the United States. Foreign companies that price their products in the U.S. market below the cost of production or below prices in their home markets are subject to antidumping duties.
Tomato Suspension Agreement (TSA)
The Suspension Agreement on Fresh Tomatoes from Mexico, also referred to as the Tomato Suspension Agreement (TSA), between the Department of Commerce (DOC) and signatory producers/exporters of fresh tomatoes grown in Mexico ensures that signatory producers and exporters sell Mexican tomatoes at or above the TSA reference price to eliminate the injurious effects of exports of fresh tomatoes to the United States. The Agreement, which was updated effective September 19, 2019, applies to all fresh and chilled tomatoes except tomatoes for processing.
The TSA provides for mandatory inspections at the border and voluntary inspections at destination. At the border, USDA will inspect all Round, Roma, and Grape tomatoes in bulk (excess of 2 pounds). At destination, USDA may inspect all tomatoes covered by the TSA upon request.
Read here the FAQs about the Section 8E Regulations and the Tomato Suspension Agreement
Buchanan Applauds Termination
Congressman Vern Buchanan, Vice Chairman of the House Ways and Means Committee and member of the Trade Subcommittee, released the following statement after the U.S. Department of Commerce announced it is suspending the 2019 U.S.-Mexico Suspension Agreement on Fresh Tomatoes from Mexico:
“Terminating the 2019 Tomato Suspension Agreement is a long-overdue victory for Florida’s tomato growers and the broader U.S. produce industry,” said Rep. Buchanan. “For too long, unfair Mexican trade practices and illegal dumping have decimated American farms and tilted the playing field against our hardworking growers. This decision finally opens the door to strong, enforceable trade remedies that will protect American jobs, strengthen our rural economy and ensure our farmers can compete and thrive.”
Buchanan has championed policies that support Florida’s fruit and vegetable industries and is a long-standing advocate for fair trade. He previously signed two letters to former Biden administration U.S. Department of Commerce Secretary Raimondo urging the department to terminate the 2019 Tomato Suspension Agreement and defend the American tomato industry. Buchanan also previously introduced the Defending Domestic Produce Protection Act to help Florida fruit and vegetable growers combat illegal seasonal dumping and Mexico’s unfair trade practices.l comercio justo. Anteriormente firmó dos cartas dirigidas a la ex Secretaria de Comercio de los Estados Unidos de la administración Biden, Gina Raimondo, instando al departamento a rescindir el Acuerdo de Suspensión del Tomate de 2019 y defender a la industria tomatera estadounidense. Buchanan también presentó anteriormente la “Ley de Protección de la Producción Nacional” para ayudar a los productores de frutas y verduras de Florida a combatir el dumping estacional ilegal y las prácticas comerciales injustas de México.