ZCZC
BCN-05
MEXICO-US-TRADE
New trade tensions as US imposes tariffs on Mexican tomatoes
MEXICO CITY, May 8, 2019 (BSS/AFP) – The United States imposed tariffs on
Mexican tomatoes on Tuesday, adding to tensions between the two neighbors
just as debate deepens over their new — but not yet ratified — trade deal
with Canada.
The 17.5-percent tariffs came into effect after the countries failed to
renew an agreement that suspended a US anti-dumping investigation first
opened 23 years ago.
The US Commerce Department said Tuesday that negotiations to revise the
agreement would continue.
“We remain optimistic that there will be a negotiated solution,” US
Commerce Secretary Wilbur Ross said in a statement.
The tariffs could ultimately be blocked should an independent body, the US
International Trade Commission, find that no US industry has been harmed by
Mexico’s alleged dumping of tomatoes on the US market.
Mexico, which supplies half the fresh tomatoes consumed in the United
States, estimated the tariffs would cost its exporters more than $350 million
a year.
“We expect many small and medium-sized exporters will find it impossible
to cope with this heavy cost,” the economy ministry said in a statement,
expressing its “disappointment and concern.”
The Mexican tomato growers’ association denied dumping. Its vice
president, Manuel Antonio Cazares, told AFP the industry would take a “heavy
hit” from the tariffs, and predicted US consumers would also pay a price.
The United States opened an anti-dumping investigation against Mexico over
tomatoes in 1996, but had repeatedly suspended it — and the tariffs that
come with it — under a series of deals.
President Donald Trump’s administration said in March the two sides had
failed to renew the deal and that the tariffs would come into force.
Mexico exported around $2 billion of tomatoes to the United States last
year — its third-largest agricultural export to the United States, after
beer and avocados.
Trade tension is rising again between the two countries as their
legislatures prepare to open debate on ratifying the United States-Mexico-
Canada Agreement (USMCA), the updated version of the 25-year-old North
American Free Trade Agreement (NAFTA).
Trump, who regularly criticized NAFTA as the worst deal ever signed by the
United States, faces a battle with opposition Democrats in the House, who
have criticized the deal for not doing enough to protect US jobs by improving
labor conditions and wages in Mexico.
Mexico, which sends more than 80 percent of its exports to the United
States, is for its part unhappy with Trump’s tariffs on its steel and
aluminum exports, and his threat to impose 25-percent tariffs on its auto
exports over what he sees as a “crisis” of illegal immigrants and drugs
crossing the border.
BSS/AFP/HR/0940