The Mexican government aims to initiate discussions with the United States to renew a bilateral agreement on Mexican tomato exports. The U.S. plans to withdraw from the pact, imposing duties of nearly 20.91% on most Mexican tomato exports starting July 14. The U.S. Commerce Department argues that the agreement has not sufficiently protected domestic tomato growers.
The agreement, established in 1996 and last renewed in 2019, seeks to regulate Mexican tomato exports to the U.S., allowing domestic producers to compete. This renewal was previously negotiated to prevent an anti-dumping investigation and resolve a tariff dispute.
Mexican President Claudia Sheinbaum stated, "The Mexican tomato in the U.S. market is not substitutable by any other in the world" in terms of quantity or quality. She emphasized that the revision process of the tomato suspension agreement has historically favored Mexico and noted that without the agreement, U.S. consumers would face higher tomato prices.
Mexican Agriculture Minister Julio Berdegue highlighted that 90% of Mexico's tomato exports are directed to the United States. Official data indicates that Mexico exported $3.3 billion worth of tomatoes last year.
Source: Reuters