Final Tomato Trade Deal Sets New Prices, Is Welcomed by Industry


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Tue. March 5th, 2013

<p style="text-indent:0px; line-height:12px;"><span style="font-weight:bold;">East Coast, US-</span><hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding">By ANUK Staff<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding">3.5.13</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding"><p><img src="https://cdn.andnowuknow.com/legacyWriterImages/department_of_commerce_tomatoes_BODY_04.jpg" alt="Cropped Images 03052013" />The Department of Commerce has entered into a new agreement with Mexican tomato growers and exporters putting proposed price increases in stone and suspending the antidumping duty investigation of imports of fresh tomatoes from Mexico, effective March 4.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding">The agreement, which suspends the 1996 antidumping investigations, covers imports of all fresh or chilled tomatoes of Mexican origin. Under US antidumping law, the suspension agreement must prevent price undercutting and price suppression in the US market and eliminate at least 85 percent of the dumping, thus providing the US industry an opportunity to compete on a level playing field.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding">The agreement strengthens enforcement by incorporating a reporting mechanism pursuant to the U.S. Department of Agriculture’s Perishable Commodities Act (PACA) fair trade regulations. <img src="https://cdn.andnowuknow.com/legacyWriterImages/department_of_commerce_tomatoes_BODY.jpg" alt="Cropped Images 03052013" /><hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding">It also accounts for changes that have occurred in the tomato industry since the signing of the original agreement and increases, from one to four, the number of tomato categories with established reference prices to better reflect the realities of the current tomato market. In addition, the reference prices in the agreement have been updated to better reflect the realities of today’s marketplace and continue to account for winter and summer seasons.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding">The Fresh Produce Association of the Americas (FPAA) congratulates the negotiating team representing Mexican growers for their hard work on behalf of the industry in reaching a final agreement. The finalized agreement is a win for U.S. jobs, companies, and consumers as it provides continuity. </p><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding"><p>“We stand fully behind the Mexican growers in implementing the new tomato suspension agreement,” said Lance Jungmeyer, President of FPAA. “Their tireless efforts to maintain market access for Mexican tomatoes mean that consumers will still be able to find the quality and diversity of tomatoes that they have grown to prefer at the supermarket and in restaurants. The agreement will ensure continued stability in the tomato supply chain.”<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding">The newly announced tomato suspension agreement, which is an extension of the same agreement originally negotiated in 1998 and renewed in 2002 and 2008. Jungmeyer said, “The U.S. distributors and the tens of thousands of U.S. individuals that rely on Mexican tomatoes for their livelihoods are now moving forward to implement the new agreement with minimal disruptions for customers. We will continue to supply the superior, vine-ripe tomatoes that consumers prefer. We will continue creating new, cutting-edge technology and researching advanced growing practices. As our members and their growing partners have done for generations, we will continue to innovate, adapt, and advance.”</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding"><p><a class="btn btn-sm btn-primary col-lg-12" style="white-space: normal;" href="http://www.freshfrommexico.com/" target="_new">Fresh Produce Association of the Americas </a></p><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding">