Currently, the United States and Mexico are on the brink of yet another trade war. This time US farmers are pitted against Mexican tomato growers and importers.
The debate centers around the price of imported tomatoes from Mexico. Florida tomato growers have said the prices of imported Mexican fresh tomatoes are sold below market value, giving them an unfair advantage.
The latest development came July 30, when the US Department of Commerce released a preliminary ruling of a 25 percent price dumping margin on Mexican tomato imports – that Mexico has been selling its tomatoes at artificially low prices, thereby undercutting their US competitors.
The Commerce Department has been conducting a “dumping” investigation into Mexican tomatoes since February. It is expected to complete its investigation in September.
“The US tomato industry looks forward to showing the US International Trade Commission that it has been injured by the surging unfairly traded Mexican imports,” said Michael Schadler, executive vice president of the Florida Tomato Exchange.
“Working closely with retailers, food service companies, and other buyers, our members’ main focus is supplying the vine-ripened, high-quality tomatoes that drive sales in stores and restaurants,” said Lance Jungmeyer, president of the Fresh Produce Association of the Americas in Nogales, Arizona.
The debate over Mexican versus US tomatoes has been brewing for decades, but heated up February 7 when the Trump Administration announced it was leaving a 2013 tomato suspension agreement with Mexican tomato growers and restarting a dumping investigation.
‘Fighting for free, fair and reciprocal trade’
“We have heard the concerns of the American tomato-producing industry and are taking action today to ensure they are protected from unfair trading practices,” US Commerce Secretary Wilbur Ross said in a release. “The Trump Administration will continue to use every tool in our toolbox to ensure trade is free, fair and reciprocal.”
The Department of Commerce is expected to complete its Mexican tomato dumping investigation by September 19, when the US International Trade Commission will determine if there is injury resulting from Mexican tomatoes entering the US
Source: freightwaves.com