Category Archives: tomato

Florida Tomato Exchange asks Commerce Department to reopen antidumping investigation

October 14, 2019 By in ADD/CVD, Antidumping, Mexico tomatoes, tomato, Uncategorized Tags: , , , , , , Leave a comment
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On Monday, the Florida Tomato Exchange requested for continuation of the antidumping investigation of fresh tomatoes from Mexico. This is surprising as the investigation was suspended on September 19, 2019, when a new suspension agreement between the Department of Commerce and Mexican growers and exporters went into effect.
The reason for the reopening of the investigation is that the Mexican tomato industry doesn’t agree with the agreement, even though they voluntarily signed the agreement last month.
While the investigation may be reopened, the suspension agreement is not automatically terminated. Once the new investigation is completed, Commerce and the International Trade Commission is tasked to determine whether or not Mexican tomatoes were dumped into the US and whether it caused injury to the US tomato industry. If there is a finding of injury, then the agreement will stay in place – if there is no finding, the agreement will be terminated.
If there is an affirmative finding, the Mexican growers have the option to withdrawal from the agreement, triggering another 90-day time frame to renegotiate before antidumping duties are imposed.
If you have any questions about this or any other antidumping and countervailing duty action, contact trade attorney David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

Senator Rubio comments on the investigation of tomatoes from Mexico.

August 8, 2019 By in ADD/CVD, tomato, Uncategorized Tags: , , Leave a comment

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U.S. Senator Marco Rubio issued a statement today about the ongoing antidumping investigation on fresh tomatoes from Mexico (Inv. No. 731-TA-747).

Senator Rubio said that “U.S. tomato growers should not have to lose their livelihoods due to a deal imposed on them by their own government”, adding that the loss of livelihood happened under the previous agreement.

Also stating: “The fact remains that the Mexicans have avoided serious negotiations for well over a year, preferring to use scare tactics and inflammatory rhetoric to try to force President Trump and Secretary Ross to back down on their commitment to ensure that American tomato growers are able to fairly compete in our own domestic market.”

Key upcoming dates in this investigation:

09/03/2019: Prehearing Report
09/10/2019: Prehearing Briefs
09/19/2019 9:30 am: Hearing
09/26/2019: Posthearing Briefs
10/10/2019: Report to the Commission
10/17/2019: Record Closing
10/21/2019: Final Comments
10/23/2019: Proposed Vote
11/04/2019: Determination(s) Issued
11/04/2019: View(s) Issued
11/04/2019: End

If you have any questions about how this investigation will impact you, contact experienced trade attorney David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

019: Report to the Commission
10/17/2019: Record Closing
10/21/2019: Final Comments
10/23/2019: Proposed Vote
11/04/2019: Determination(s) Issued
11/04/2019: View(s) Issued
11/04/2019: End

If you have any questions about how this investigation will impact you, contact experienced trade attorney David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

Mexico’s Tomato Growers Submit Proposal for New Tomato Suspension Agreement.

May 27, 2019 By in Mexico, Mexico tomatoes, tomato, Uncategorized Tags: , , , , Leave a comment
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As you are aware, a suspension agreement between tomato growers and the Department of Congress was passed in 1996 – this agreement reached between US and Mexican tomato growers to maintain a balance in market share between the two sides. This agreement also postponed any Commerce investigation into whether Mexican tomatoes are “dumped” into the US. Last year, tomato growers in Florida petitioned Commerce to suspend the agreement due to an increase in market share by Mexican tomato growers. After the required notice period, the agreement was withdrawn on May 7th.

On May 22nd, Mexico’s tomato growers submitted a proposal that addresses among other things:

1. reference prices for organic and non-organic tomatoes.
2. Mexican growers contend there is no instance of a sale below reference price.
3. Mexican growers without a US repack operation will have a disproportional and negative impact.
4. Revisions to Appendix D removing 100 percent of defective product from the US market.
5. Protection from legal challenges and exposure to treble damages for Mexican growers.
6. Export management such as quarterly certifications to include volumes assigned and or received for export.
7. Adding all tomatoes to the USDA marketing order on Florida tomatoes
8. Increase PACA enforcement including quarterly certifications, preseason letters
9. Commerce Department changes – establishing a taskforce between Commerce, USDA and CBP, quarterly meetings with Commerce to discuss monitoring and enforcement efforts, third-party verification compliance.

The full document can be viewed here. 

Check back for any updates on a new suspension agreement. If you have any questions, contact David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com.

17.5% tariffs on Mexican tomatoes.

May 8, 2019 By in ADD/CVD, Mexico tomatoes, tomato, Uncategorized Tags: , , , , , Leave a comment
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While we frequently hear “tariff” and “China” in the same sentence, we will likely now start hearing “tariff” and “Mexico” more frequently as the Trump administration has placed near tariffs on imports of fresh tomatoes from Mexico.

A little background – in 1996 the US did not pursue tariffs on Mexican tomAatoes based off assurances from Mexican tomato growers would not sell their tomatoes at articially lower prices. However, last year Florida tomato growers requested the Trump administration to investigate whether Mexican tomatoes were being sold at articially low prices. In February 2019, the Trump administration issued a notice they would withdraw from the 1996 agreement on May 7th if a new deal could not be reached. Since no agreement was reached, Mexican tomatoes are now subject to a 17.5% tariff. If a subsequent investigation finds no unfair pricing, then any tariffs paid will be refunded.

Questions about the tomato tariffs, call/text David Hsu at 832.896.6288 or email at attorney.dave@yahoo.com.