Us Mexico Tomato Suspension Agreement

[…] The investigation was suspended on September 19, when Mexican trade officials and tomato producers and exporters signed a new tomato […] Under the agreement, processing tomatoes are not subject to the agreement, but must be sold directly to a processor (i.e., the first buyer in the United States must be a true processor). The 2019 agreement provides, in accordance with Point 734 (c) (1) of the Act, that the commodity is sold at the reference price or above the fixed reference price and that at each exporter`s entry, the amount of the estimated normal value greater than the export price (or calculated export price) does not exceed 15% of the weighted average amount for which the estimated normal value exceeds the export price (or built export price) for all producer/export products examined during the survey. We have determined that the 2019 agreement would completely eliminate the adverse effect of product exports to the United States and prevent the price level of domestic fresh tomatoes from being suppressed or lower by imports of these products from Mexico, in accordance with Section 734, Point c), of the Act. Nothing says „summer“ like a fresh tomato. And thanks to trade, tomatoes aren`t just a seasonal treat for Americans. However, a commercial struggle for our favourite little red vegetable, which had ruined the back of the head for decades, warmed up and may have threatened our ability to taste tomatoes all year round. Unlike a trader, a broker does not support the ownership or control of tomatoes, but arranges delivery directly to the seller or buyer. Since a broker never assumes ownership or control of tomatoes, the buyer and not the broker, he may require an inspection and only the buyer is entitled to any adjustments that result from it. The inspection would take place at the buyer`s destination, as indicated in the broker`s contract with the seller.

2) For tomatoes that are not covered by Federal Regulation 966 on marketing (for example. B Roma tomatoes, grape tomatoes, greenhouse tomatoes and all imported tomatoes during the year in which the federal regulation on marketing authorisation 966 does not apply), a 2019 suspension agreement is required for the processing of exception forms (pdf). K. „round“ refers to fresh, round, ripe or pure green tomatoes with no stem on tomatoes, regardless of the growing method or type of packaging. The customer cannot resell DEFECTIVE tomatoes. Instead, they must be destroyed or rendered. Signatories should provide a copy of the agreement to any customer who is not aware of its terms or who has questions about these conditions. In cases where the buyer has refused the full amount of tomatoes due to quality and packaging errors, the signatory or seller may decide, if necessary, to destroy or return the entire lot. If the lot is destroyed, the signatory or seller provides, if necessary, by the recipient, the documents referred to in point B.5 for partial releases. In addition, the signatory or seller may, if necessary, reimburse the buyer for the usual and usual USDA freight and inspection costs incurred by the buyer with respect to the lot, provided that the signatory or seller receives, if necessary, the assistance documents covered in point B.5 above. Trade treats these transactions as „non-sales,“ provided appropriate support documentation is available. The Commerce Department said the agreement would benefit both consumers and tomato growers in Florida, Texas and Arizona.

The U.S. tomato industry first filed a case with U.S. trade agencies in the 1970s to compete with cheap Mexican tomatoes that were allegedly sold (or „dumped“) in the United States at a lower market value.