Suspension of U.S.-Mexico Tomato Suspension Agreement a "major victory" for U.S. ag

The Florida Tomato Exchange has applauded the U.S. Department of Commerce's announcement on April 14 to terminate the 2019 U.S.-Mexico Tomato Suspension Agreement, effective July 14, 2025. 

“This is a major victory for American agriculture,” said Robert Guenther, Executive Vice President of the Florida Tomato Exchange. “For decades, American tomato farmers have suffered from unfair trade practices by Mexican tomato exporters. Terminating this agreement and enforcing U.S. trade laws is the only way to give domestic growers the relief they’ve long deserved finally. We thank the Administration for standing strong in support  of American farmers and the rule of law against unfair foreign trade practices.” 

The Department’s decision comes in response to a 2023 petition from the U.S. tomato industry, which was backed by more than 60 bipartisan Members of Congress from 11 states, the American Farm Bureau Federation, state Farm Bureaus from all nine major tomato-producing states, and 15 fruit and vegetable trade associations across the country. 

In a release, the Florida Tomato Exchange said that despite five suspension agreements since 1996, Mexican tomato companies have continued to dump products into the U.S. market, undercutting American growers and circumventing enforcement mechanisms.

Since the first agreement, Mexican tomato imports have surged nearly 400%, capturing over 70% of the U.S. market. The U.S. industry’s market share dropped from 80% to 30% during that period. 

In 2019, the U.S. Department of Commerce found that Mexican tomatoes were being dumped in the United States at high margins. The U.S. International Trade Commission unanimously confirmed the material injurious effect of that dumping on the American tomato industry. Today’s decision enforces those findings and moves to restore fair competition in the marketplace. 

“The tomato suspension agreement failed American farmers,” said Guenther. “It has been impossible to enforce and easy to evade. Today’s action finally ends the cycle of harm that has decimated the American tomato industry over nearly three decades.” 

Background 

• The original U.S. antidumping investigation of Mexican tomato imports began in 1996 but was suspended through successive agreements with the Mexican industry.
• In 2019, the Commerce Department resumed the investigation at the request of U.S. growers led by the Florida Tomato Exchange. It found that Mexican tomatoes were being dumped. 
• The U.S. International Trade Commission unanimously confirmed the injurious effect of the Mexican dumping on American tomato producers. 

Next Steps 

• The termination of the Suspension Agreement will take effect July 14, 2025.
• As of that date, U.S. Customs and Border Protection will begin requiring antidumping cash deposits on Mexican tomato entries. 
• No additional investigative steps are required, as the underlying antidumping case was completed in 2019. 

According to the International Trade Administration, the U.S. Dept. of Commerce maintains 734 antidumping and countervailing duty orders, which provide relief to American companies and industries impacted by unfair trade.

Foreign companies that price their products in the U.S. market below the cost of production or below prices in their home markets are subject to antidumping duties. 

With the termination of this agreement, Commerce will institute an antidumping duty order on July 14, 2025, resulting in duties of 20.91% on most imports of tomatoes from Mexico.