U.S. ends tomato agreement with Mexico

A major shift in U.S. trade policy is hitting Mexican tomato exporters as the U.S. Department of Commerce ends the 2019 suspension agreement and imposes a 17.09% anti-dumping tariff on most fresh tomato imports from Mexico. The decision, announced on the final day of a 90-day review period earlier this month, signals a shift back to stricter trade measures intended to address long-standing concerns over unfair pricing practices.

The Department argues that many Mexican tomatoes have been sold in the U.S. below market value, harming domestic producers. Commerce Secretary Howard Lutnick stated that this move is part of a broader strategy to protect American agriculture and reflects the administration’s trade stance toward Mexico.

The decision has stirred strong reactions across the fresh produce industry. Critics of the suspension agreement claimed it failed to stop low-priced imports. But others, including the Controlled Environment Agriculture (CEA) Alliance, pushed for renegotiation rather than termination, saying previous deals benefited U.S. consumers.

CEA Alliance executive director Tom Stenzel expressed deep disappointment, saying the Department disregarded concerns from U.S. greenhouse growers, who now supply over a third of the country’s fresh tomatoes. He noted greenhouse production in the U.S. rose 69% between 2010 and 2023, while field-grown output dropped nearly 50%.

Stenzel also warned that the new tariff could hurt cross-border greenhouse investments across the U.S., Canada, and Mexico. He criticised the move as politically motivated and disconnected from market realities, pledging that the CEA Alliance will continue promoting the importance of greenhouse-grown tomatoes in American agriculture.

source: reuters.com, frutasdechile.cl

photo: mexiconewsdaily.com