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Mexico, U.S. appear to resolve tomato dispute

The Commerce Department has initialed a proposed agreement with the Mexican tomato industry suspending the antidumping duty investigation of fresh tomatoes from Mexico, the department announced Saturday.
Francisco Sánchez
Francisco Sánchez
The Commerce Department “believes the draft agreement meets the requirements of U.S. antidumping law and provides an effective remedy for the U.S. domestic industry,” Undersecretary for International Trade Francisco Sánchez said in a news release.

The agreement establishes mechanisms for increased coverage of Mexican tomato imports and strengthened enforcement.

“I am pleased that we were able to come to an agreement on fresh tomato imports from Mexico that restores stability and confidence to the U.S. tomato market and meets the requirements of U.S. law,” Sánchez said.

“The draft agreement raises reference prices substantially, in some cases more than double the current reference price for certain products, and accounts for changes that have occurred in the tomato market since the signing of the original agreement,” he said.

“This solution puts in place important mechanisms to attain increased signatory coverage and robust enforcement that will allow American workers and the U.S tomato industry to compete on a level playing field.”

Agriculture Secretary Tom Vilsack applauded the agreement.

“The draft agreement meets the requirements of U.S. antidumping law and provides an effective remedy for our domestic tomato producers, further bolstering agriculture as a bright spot in our nation's economy,” Vilsack said in a news release.

“Ultimately, the Obama administration forged an agreement that will restore stability and confidence to the U.S. tomato market and ensure fair trade in fresh tomatoes through increased reference prices, coverage and strengthened enforcement.”

Vilasck noted that U.S. fresh and processed tomatoes account for more than $2 billion in cash receipts.