The Mexican tomato industry has reached a final agreement with the US Department of Commerce in order to continue exporting fresh and chilled tomatoes to the US market following nine months of negotiations.
The new deal, which suspends the 1996 antidumping duty investigation into imports of fresh tomatoes from Mexico, means reference (or minimum) prices for Mexican tomatoes sold on the US market increased with immediate effect on 4 March.
Under US antidumping law, the suspension agreement must prevent price undercutting and price suppression on the US market, and also eliminate at least 85 per cent of dumping.
The US Department of Commerce said this will provide the US tomato industry an opportunity to compete on a level playing field.
The resolution also reflects changes in the tomato industry since the signing of the original 1996 agreement and increases, from one to four, the number of tomato categories with established reference prices to better reflect the realities of the current tomato market.
In addition, the reference prices in the agreement have been updated to better reflect the realities of today’s marketplace and continue to account for winter and summer seasons.
Under the agreement, the following new minimum prices took effect on 4 March:
• Open-field and adapted-environment tomato prices are now set at US$0.31 per pound in winter and US$0.2458/lb in summer.
• Controlled-environment tomatoes are US$0.41/lb in winter and US$0.325/lb in summer.
• Loose specialty tomatoes are US$0.45/lb in winter and US$0.3568/lb in summer.
• Packed specialty tomatoes are US$0.59/lb in winter and US$0.4679/lb in summer.
In comparison, summer reference prices for all Mexican tomatoes under the 2008 suspension agreement were set at US$0.2169 per pound and US$0.1720/lb respectively.
Mexico’s association of protected horticulture (Amhpac) pointed out in a press release that it would immediately communicate to its growers about the new minimum prices, the new way of branding cartons and the new laws with which to comply, as well as other aspects of the agreement which must be respected.
A fact sheet has also been made available on the US Department of Commerce's website.
The Fresh Produce Association of the Americas (FPAA) has congratulated the negotiating team representing Mexican tomato growers for their hard work on behalf of the industry in reaching a final agreement, which FPAA claims will provide continuity and serve as a win-win for US jobs, US companies, and US consumers.
Thanks to the “tireless efforts” of Mexico’s tomato growers to maintain market access, Lance Jungmeyer, president of FPAA, said US consumers will now still be able to find the quality and diversity of tomatoes that they have 'grown to prefer' in US supermarket and in restaurants.
“The US distributors and the tens of thousands of US individuals that rely on Mexican tomatoes for their livelihoods are now moving forward to implement the new agreement with minimal disruptions for customers,” Jungmeyer explained.
“We will continue to supply the superior, vine-ripe tomatoes that consumers prefer.We will continue creating new, cutting-edge technology and researching advanced growing practices. As our members and their growing partners have done for generations, we will continue to innovate, adapt, and advance.”
This new tomato deal continues an agreement that was originally negotiated in 1996 and later renegotiated and renewed in both 2002 and 2008.
