While earlier today the Florida Tomato Exchange (FTE) asked the US Department of Commerce to withdraw from the agreement, eliminate the reference prices and resume the 1996 investigation, FTE is not a signatory to the agreement and represents only a small portion of the US industry. Accordingly, FTE cannot compel such an action.
The Mexican signatories are disappointed that FTE would make this request. FTE did not raise any issues for the first five years of the agreement and its recent claims are all directly contradicted by US Department of Agriculture data and the US Department of Commerce’s own finding to date.
“FTE’s request is quite surprising, given the large volume of Mexican tomatoes FTE members like Lipman, Procacci, DiMare and Pacific Tomato Growers, purchase and distribute in the United States,” says Mario Robles, director of the Sinaloa association. “We can’t figure it out.”
The Mexican signatories have been working with the Commerce Department for over five years to rigorously enforce the agreement, and have been working since June on a number of enhanced monitoring and enforcement provisions designed to further strengthen the framework that has been in place since 2013. The Mexican signatories intend to continue this effort.
For additional information, please see the attached fact sheet or contact the following:
In Mexico:
Mario Robles
Director CIDH-CAADES
(667)7160785
(667) 7166499
In the United States:
Martin Ley
President, Fresh Evolution
amley@fresh-evolution.com
AGREEMENT SUSPENDING THE ANTIDUMPING INVESTIGATION ON
FRESH TOMATOES FROM MEXICO
FACT SHEET
November 14, 2018
- The agreement remains in effect.
- The US Commerce Department (Commerce) and the US International Trade Commission (ITC) initiated concurrent sunset reviews of the agreement in February 2018. Both reviews are currently ongoing. In order for the agreement to continue, these agencies must make final determinations that dumping (Commerce) and injury (ITC) will likely recur or continue if the agreement is terminated. If so, the agreement will remain in place as it is with no changes. If not, the agreement is terminated and there is a free market.
- Commerce is also undertaking an administrative review of the suspension agreement at the request of both the Mexican and Florida producers. Commerce will issue its preliminary determination on or before April 1, 2019.
- Commerce and the Mexican signatories are currently discussing possible changes to the agreement, but the details are not public and no determination by the parties has been made. The US industry is not a party to the agreement.
- Litigation challenging the agreement at the US Court of International Trade has been stayed to allow for discussions to proceed. An update is due to the court on December 4, 2018.
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Other than through sunset, the agreement cannot be terminated unless one of the following occurs:
- Commerce determines through the ongoing administrative review that the statutory requirements of the agreement are not being met;
- Commerce initiates another administrative review of a newly alleged violation and makes a final determination that the violation substantially frustrates the purposes of the agreement and cannot be considered inconsequential or inadvertent; or
- A party to the agreement – either the Mexican signatories or the Commerce Department – withdraws from the agreement. In that case, the withdrawal would take effect only after 90 days.
- In either case, the 1996 investigation would resume as of the preliminary determination at both Commerce and the ITC.
Source: Fresh Evolution