US to exit tomato trade agreement with Mexico

The US has announced it will withdraw from the tomato suspension agreement with Mexico by May 7, 2019, although this does not mean the end of negotiations. According to the RaboResearch, the withdrawal could still be avoided if both parties can reach a renewed suspension agreement.

Half of the fresh tomatoes currently consumed in the US are imported from Mexico. If there is no new suspension agreement by May 7, the US will impose a temporary anti-dumping duty of 17.5% on imports of Mexican tomatoes. The US International Trade Commission will also decide whether or not the US tomato industry has been harmed by tomato imports from Mexico. If substantial harm is the verdict, a new anti-dumping duty will be imposed. Alternatively, if no harm is determined, all restrictions to imports of fresh tomatoes will be removed.