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Mexico rejects the new U.S. tomato tariff and seeks to minimize its impact

The United States Department of Commerce's recent decision to slap a 17% tariff on Mexican tomatoes has reignited trade tensions between the two countries. The measure, announced on Monday, responds to a complaint filed in 1996 by Florida producers, who accuse their Mexican competitors of unfair trade practices. With this resolution, Washington reactivates a countervailing duty that affects a key sector for bilateral agricultural trade.

The Mexican government has rejected this imposition. On Tuesday, President Claudia Sheinbaum declared that Mexican tomatoes will continue to be exported despite the new tax, as "there is no substitute" for this product in the U.S. market. During her morning conference at the National Palace, the president said it was an "unfair" measure that would harm U.S. consumers by increasing the price of the product.

Mexican tomatoes account for 90% of tomato consumption in the United States, with an estimated export value of $2.8 billion a year. According to data from the Mexican government, nearly 4.3 billion pounds of the 6.5 billion pounds of tomatoes consumed in the United States each year come from Mexican fields.

Sheinbaum recalled that the agreement that exempted Mexican tomato exports from tariffs had already been withdrawn in 2019, and had later been reinstated in view of the U.S. market's high dependence on the Mexican product. The Mexican government said it will continue to negotiate with U.S. authorities to reverse or mitigate the new tariff.

The president also read a statement signed by the main associations of tomato producers, which stressed that, after 28 years of the previous trade agreement, the sector has managed to modernize and offer a competitive product, which has won the preference of U.S. consumers. The agricultural organizations warned that there are no viable alternatives, in the short or medium term, to replace the Mexican tomato in that market.

The Ministries of Economy and Agriculture regretted the U.S. government's decision, pointing out that several proposals have been put forward to reach an agreement with Florida producers, without success. According to both institutions, an agreement wasn't reached due to political reasons.

In addition to the tomato tariff, the Mexican government faces a possible increase in overall tariffs on exports outside the TMEC framework, as Donald Trump could raise tariffs for Mexican products from 25% to 30%. Against this backdrop, Sheinbaum's government is seeking to make progress in the negotiations and prevent the new U.S. trade policy from aggravating the effects on the export sector.

Source: elpais.com

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