On February 6, 2019, Commerce informed the Mexican signatories, in accordance with Section VI.B of the 2013 agreement, that Commerce intended to withdraw from the 2013 agreement, denounce sunset and administration reviews and reopen the investigation into AD tariffs.  Since the notification, as noted above, Commerce has consulted with representatives of CAADES et al. and the domestic industry to discuss a possible suspension agreement. The International Trade Administration`s Trade Enforcement and Compliance Department, which negotiated today`s suspension agreement, is responsible for vigorous enforcement of U.S. trade law through an impartial and transparent process that respects international rules and is evidence-based. 36. The re-opening of the investigation and the negotiation of a new suspension agreement were carried out in accordance with the trade rules in force at the time of the initial investigation, 19 CFR 353.18 (1996). As this agreement constitutes a new segment of the procedure, the agreement is subject to the current rules. 19 CFR 351.701; see also San Vicente Camalu SPR de Ri v. United States, 491 F. Supp. 2d 1186 (CIT 2007).
On November 28, 2007, Trade and some Mexican producers/exporters adopted a new agreement to suspend the AD investigation into imports of fresh tomatoes from Mexico. On December 3, 2007, Commerce issued the initial agreement to interested parties for comment. On December 17 and 18, 2007, several interested parties came forward in support of the original agreement. The U.S. Department of Commerce has reached an agreement with Mexican tomato producers to suspend the ongoing anti-dumping investigation into fresh tomatoes from Mexico, closing the anti-dumping duties on tomatoes from Mexico. one. When Commerce proposes to revise the reference price (e) on the basis of an agreement between the parties in the context of consultations pursuant to Section VII.G of this agreement, the provisional reference price, including the calculation method and all information or data derived from this method, will be made public no later than 30 days before the date on which the price becomes final and effective. Despite the widespread agreement of economists for free trade to increase net prosperity, nations tend to create barriers to trade because governments focus on the loss of a particular group and not on the overall net benefit of free trade. In this study, we find that U.S. producers, as well as greenhouse tomato and cherry and grape producers in Canada, benefit from the suspension agreement. Much of the surplus of Mexican producers is mitigated by quota revenues, which even translates into a net fruit tomato, cherry tomatoes and grape tomatoes.
This indicates that the suspension agreement resulted in the transfer of Mexican production of earth tomatoes to greenhouse tomatoes, reflecting its comparative advantage in greenhouse production. Until this recent agreement, trade in greenhouse and cherry tomatoes and grapes was not binding, as the minimum import price was too low to limit trade. However, minimum prices for these two categories are now higher, resulting in restrictive trade restrictions, leading the United States to divert its imports from Mexico to Canada.