U.S. Rep. Buddy Carter (R-GA) on Feb. 8 applauded action by the U.S. Department of Commerce ending a trade agreement with Mexico that negatively impacted America’s tomato growers.
“This is great news for tomato growers in the first district and across the nation,” said Rep. Carter referring to the Commerce Department’s Feb. 6 decision to withdraw from the 2013 Suspension Agreement on Fresh Tomatoes from Mexico that he and his colleagues said has allowed unfair competition to increasingly put U.S. tomato growers out of business.
“The decision to withdraw from this harmful agreement will ensure that Mexican tomato growers cannot get an upper hand through unfair trade practices while helping domestic growers compete,” Rep. Carter said. “American growers should always be first.”
The department’s decision will provide for a May 7 deadline for the resumption of the U.S. antidumping investigation on fresh tomatoes from Mexico and allow for the effective enforcement of U.S. trade laws, according to lawmakers.
Rep. Carter was among 48 bipartisan members from both chambers of Congress who signed a Feb. 1 letter sent to U.S. Commerce Secretary Wilbur Ross requesting that he “immediately terminate the current agreement suspending the outstanding antidumping investigation on fresh tomatoes from Mexico.
Among the members joining Rep. Carter in signing the letter were U.S. Sen. Marsha Blackburn (R-TN) and U.S. Reps. Kevin McCarthy (R-CA), Fred Upton (R-MI) and Vern Buchanan (R-FL).
Since 1996, the lawmakers wrote, Mexican tomato growers have used a suspension agreement to export dumped tomatoes to the United States, thereby circumventing U.S. laws intended to prevent harm to domestic industries.
“Mexico’s share of the U.S. tomato markets has increased from 32 to 54 percent, while the share for U.S. growers has fallen from 65 to 40 percent,” according to their letter. “Since 2002, imports of Mexican tomatoes have skyrocketed 125 percent and U.S. production has declined 34 percent.”
The situation has “been particularly hard” on small family operations in the United States, according to the lawmakers, who wrote that “the production losses reverberate beyond agriculture to deeply impact rural economies and land development patterns.”
The congressional members warned the Commerce Secretary that, “The industry will continue to shrink if the status quo is maintained.”
Last week, the Commerce Department agreed.
“We have heard the concerns of the American tomato producing industry and are taking action today to ensure they are protected from unfair trading practices,” said Secretary Ross last week. “The Trump Administration will continue to use every tool in our toolbox to ensure trade is free, fair, and reciprocal.”
The Commerce Department said that upon completion of the withdrawal, it “will continue with its investigation and notify the International Trade Commission (ITC) of its final determination.”
The department noted that if it continues to find sales made at less than fair value in its final determination, the ITC then will complete its own investigation and make a final determination with respect to injury.
“If both Commerce and the ITC issue affirmative final determinations, an antidumping duty order will be issued,” according to the department.