FACT SHEET

Agreement Suspending the Antidumping Investigation on
Imports of Fresh Tomatoes from Mexico

On December 4, 2002, the Department of Commerce (the Department) signed an agreement which suspends the antidumping investigation on fresh tomatoes from Mexico. The parties to the agreement are the Department and Mexican producers/exporters accounting for substantially all exports of fresh tomatoes from Mexico to the United States.

Terms of the Agreement:
The terms of the agreement require that the Mexican producers/exporters who are signatories to the agreement sell fresh tomatoes to their U.S. customers in such a way that will 1) eliminate completely the injurious effects of exports to the United States of the subject merchandise and
2) prevent the suppression or undercutting of price levels of domestic fresh tomatoes by imports of that merchandise from Mexico.

The new agreement incorporates provisions to overcome certain shortcomings of the old suspension agreement. Most importantly, the agreement contains provisions, developed in consultation with the U.S. Customs Service, which will greatly improve the overall operations of the new agreement and make the agreement easier to enforce.

Background:
On May 31, 2002, certain Mexican producers/exporters of fresh tomatoes withdrew from an agreement signed in November 1996 suspending the antidumping investigation on imports of fresh tomatoes from Mexico, thereby terminating the agreement, effective July 30. With the termination of the agreement, the Department reactivated the underlying investigation and instructed the U.S. Customs Service to require antidumping duty deposits for entries made on or after July 30.

Subsequently, the Department engaged in negotiations of a proposed new suspension agreement requested by Mexican producers/exporters. The Department drafted a new agreement with input from U.S. producers of tomatoes, the U.S. Customs Service, and the U.S. Department of Agriculture.

The Department and Mexican producers/exporters accounting for substantially all exports of fresh tomatoes from Mexico to the United States initialed the agreement on November 8, 2002. Prior to the signing of the agreement, interested parties were given a chance to comment on the initialed agreement.