Mexican, US Tomato Growers Reach Final Agreement to Suspend AD Duties; Still Includes Inspection Requirements

Mexican tomato growers on Sept. 19 signed off on a final agreement to again suspend antidumping duties on Mexican tomatoes, they said in a press release. The deal still includes controversial provisions on mandatory inspections for most imports of Mexican tomatoes, but the growers say they were able to obtain concessions that should soften the impact of the controversial requirements.

A copy of the final agreement circulated before the signing ceremony includes a series of minor changes to inspection requirements proposed in the original deal (see 1908210026), including that the U.S. Department of Agriculture will conduct the inspections “in accordance with its normal practice." That means the inspections must be “done in a timely manner and completed within 24 hours,” the Mexican growers said, calling the change their most important victory.

In another change, Commerce will consult the USDA on implementation of the program and loads already inspected at USDA’s behest don’t have to again undergo a Commerce-mandated inspection. The inspection provisions also no longer say Mexican growers should try to get their tomatoes inspected before to the implementation of the inspection program, which is slated for six months after the agreement’s effective date.

The final agreement also now specifies that all Mexican tomatoes must grade to at least U.S. No. 2 of the relevant U.S. Standard for Grades, and removes the U.S. Standard for Grades of Tomatoes on the Vine from the criteria to which tomatoes will be inspected.

"These provisions help relieve our concerns that the United States was setting up a de facto quota or volume restriction," said Rosario Beltran, president of the Mexican grower association CAADES. "We hope these provisions will give comfort to the many interests in both countries concerned about bottlenecks at the border and supply chain delays." U.S. trade associations from across several industries had also expressed concern about the possibility of congestion at the border as a result of the inspection requirements (see 1909110056).

"The agreement was hard fought, but we were able to secure a number of important provisions that will make this deal work for our distributors and customers," said Mario Robles, director of the Sinaloa growers association, which was also a signatory to the agreement.

Mexican growers and their U.S. counterparts also agreed to changes to the Commerce certification and sampling program that gives exporters and selling agents 30 days to submit information requested by Commerce if they are selected. The final agreement also now specifies that minimum reference prices set by the agreement will not be changed for the next 18 months.