The U.S. Department of Commerce opened an investigation by the request of the Florida Tomato Exchange (FTE) that could result in anti-dumping duties on Mexican tomatoes. In June of 2023, FTE filed a request to eliminate the 2019 Tomato Suspension Agreement. The purpose behind this request was to end the unfair trading pattern between the U.S. tomato industry and the country of Mexico. The request also highlighted the past attempts in stopping the unfair trading practices since 1996, but none of them have proved to be successful.
“Despite the good faith of the Commerce Department over the last four years, the 2019 Suspension Agreement has not been able to close the loopholes that have always been a problem,” stated Michael Schadler, Executive Vice President of the Florida Tomato Exchange. “It’s become clear that these agreements are simply not enforceable, at least when it comes to the tomato trade with Mexico. Suspension agreements might be an effective tool for products that can be kept in storage until market condition improve, but for highly perishable items like fresh tomatoes, there is just too much incentive to evade the reference prices when markets are oversupplied.”
According to the request, all five suspension agreements over the last 27 years have failed. This creates a huge concern for Florida tomato growers, and they could possibly be driven out of business. More information on the Florida Tomato Exchange can be found on their website.
In a statement with POLITICO, Schadler also stated that FTE is hoping to come to a quick decision to end the current agreement with Mexico after the end of the rebuttal comment period on Sept. 25. The department’s International Trade Administration said it will consider any comments submitted. Interested parties will have an opportunity to submit rebuttal comments after the 30-day comment period.
Source: FFVA
