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FACT SHEET
Termination of Agreement Suspending an Antidumping Investigation on
Imports of Fresh Tomatoes from Mexico
On May 31, certain Mexican tomato growers withdrew from a suspension agreement
on imports of fresh tomatoes, thereby terminating the agreement, effective
July 30, 2002. With the termination of the agreement, the Department of
Commerce ("the Department") will reactivate the underlying antidumping
("AD") investigation and will instruct the U.S. Customs Service
("Customs") to require antidumping duty deposits for entries
made on or after July 30, 2002.
The Department will reactivate the investigation from the time of the
preliminary determination, originally published on November 1, 1996. Customs
will require deposits based on the preliminary antidumping margins which
range from 4.16 to 188.45 percent. Antidumping margins for individual
Mexican producers/exporters are listed below.
Background:
On April 25, 1996, the Department initiated an antidumping investigation
on imports of fresh tomatoes from Mexico. On November 1, 1996, the Department
published its preliminary determination and its notice of an agreement
to suspend the antidumping investigation. The terms of the suspension
agreement between the Department and producers/exporters accounting for
substantially all imports of fresh tomatoes from Mexico were that each
signatory producer/exporter agreed to revise its prices to eliminate completely
the injurious effects of exports of this merchandise to the United States.
With the termination of the agreement, the Department will reactivate
the investigation, and is currently scheduled to make its final determination
on December 12, 2002. If the Department makes a final affirmative determination,
then the International Trade Commission ("ITC") is scheduled
to make its final injury determination on January 27, 2003. If both the
Department's and the ITC's final determinations are affirmative, the Department
will issue an antidumping order. For further background, see the attached
questions and answers section.
Product Description:
The products covered by this investigation are all fresh or chilled tomatoes
except for cocktail tomatoes and those tomatoes which are for processing.
For purposes of this investigation, cocktail tomatoes are greenhouse-grown
tomatoes, generally larger than cherry tomatoes and smaller than Roma
or common round tomatoes, and are harvested and packaged on-the-vine for
retail sale. For purposes of this investigation, processing is defined
to include preserving by any commercial process, such as canning, dehydrating,
drying, or the addition of chemical substances, or converting the tomato
product into juices, sauces, or purees.
Tomatoes imported from Mexico covered by this investigation are classified
under the following subheadings of the Harmonized Tariff Schedules of
the United States, according to the season of importation: 0702.00 and
9906.07.01 through 9906.07.09
Preliminary Antidumping Duty Margins:
|
Company
|
Antidumping Margins
|
| San Vicente Camalu |
4.16%
|
| Ernesto Fernando Echavarria Salazar Grup Solidario |
11.89%
|
| Arturo Lomeli Villalobas S.A. de C.V. |
26.97%
|
| Eco-Cultivos |
45%
|
| Ranchos Los Pinos S. de R.L. de C.V. |
10.26%
|
| Administradora Horticola del Tamazula |
28.30%
|
| Agricola Yory, S. de P.R. de R.I. |
11.95%
|
| All Others |
17.56%
|
Case Calander:
|
Event
|
Date
|
| Initiation |
April 25, 1996 |
| Department's Preliminary Determination |
November 1, 1996 (published) |
| Notification of Suspension Agreement |
November 1, 1996 (published) |
| Department's Final Determination |
December 12, 2002 (fully extended) |
| ITC Final Determination* (estimate) |
January 27, 2003 (fully extended) |
| Issuance of AD Order** (estimate) |
February 3, 2003 (fully extended) |
* If either the Department or the ITC make a negative final determination,
the investigation is terminated.
**An AD order will be issued only in the event of final affirmative determinations
by the Department and the ITC.
Import Statistics:
| |
1996 |
1997 |
1998 |
1999 |
2000 |
2001 |
| Value ($) |
$580,348,521 |
$517,048,769 |
$567,442,691 |
$489,587,610 |
$411,795,805 |
$484,922,820 |
| Quantity (MT) |
685,678 |
660,609 |
734,053 |
615,064 |
589,954 |
679,187 |
Source: Dataweb, ITC.
| Question: |
When was the Agreement on tomatoes from Mexico put
into place? |
| Answer: |
On November 1, 1996, the Department published a notice
in the Federal Register announcing that it had reached an agreement
to suspend the antidumping investigation on fresh tomatoes from Mexico. |
| Question: |
What was the purpose of the Agreement? |
| Answer: |
Under the Agreement, signatory growers/exporters
of Mexican fresh tomatoes agreed to sell their merchandise in the
United States at or above a minimum reference price. The reference
price was intended to eliminate injury to the U.S. industry by preventing
price suppression and the undercutting of prices in the U.S. market
by low-priced Mexican imports. |
| Question: |
When did the Mexican growers withdraw from the Agreement?
When will termination of the Agreement become effective? |
| Answer: |
On May 31, 2002, certain Mexican tomato growers withdrew
from the Agreement. As a result, the Agreement terminates on July
30, 2002 (60 days after the notification of withdrawal, as stipulated
in the terms of the Agreement). |
| Question: |
Why did the Mexican growers withdraw? |
| Answer: |
It appears that they were most concerned with whether
there would continue to be sufficient participation in the Agreement
and with the manner in which the Agreement was being enforced. |
| Question: |
What are the consequences for Mexican growers and
importers of fresh tomatoes from Mexico? |
| Answer: |
With the termination of the Agreement, the Department
will reactivate the investigation from the time of the preliminary
determination. Therefore, the Department will instruct the U.S. Customs
Service to require cash deposits or bonds on entries of the subject
merchandise on or after July 30, 2002, based on the preliminary antidumping
margins which range from 4.16 to 188.45 percent. |
| Question: |
When will the Department complete the investigation? |
| Answer: |
The Department is currently scheduled to make its final
determination on December 12, 2002. If the Department makes a final
affirmative determination, then the International Trade Commission
is scheduled to make its final injury determination on January 27,
2003. If both the Department and the International Trade Commission
reach affirmative final determinations, the Department will issue
an antidumping order. |
| Question: |
Was the Agreement on tomatoes from Mexico successful? |
| Answer: |
Generally, the Agreement fulfilled its purpose and was
a successful alternative to an antidumping order. Representatives
of the U.S. industry have noted that the Agreement helped reduce the
suppression of prices of domestic fresh tomatoes. |
| Question: |
When the Department restarts the antidumping duty
investigation, will the ongoing sunset review of the Agreement be
terminated? |
| Answer: |
It seems likely. However, the Department is still reviewing
how termination of the Agreement will affect the sunset review. |
| Question: |
Can the Department negotiate another Agreement? |
| Answer: |
Yes. If the Mexican producers/exporters make such a
request, we can attempt to negotiate another Agreement. |
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