(Download our newsletter in PDF: Trading Room -20190823)
In an interview, the Underminister of North American Affairs of the Ministry of Foreign Affairs, Jesus Seade, commented on China and its “trade war” with the USA.
According to the news outlet, Mr. Seade commented that Mexico has to become more attractive for Chinese investment and that Mexico must address its trade deficit with China.
Also, we note that Chinese investment in Mexico is insignificant in comparison to foreign direct investment from other countries, e.g. the US, Japan, Korea, etc. However, Mr. Seade stressed that such situation must change and Mexico has “… to be [China’s] privileged partner in the western hemisphere, America, and Mexico has to do everything so that this can occur.”
This Wednesday, the US Department of Commerce announced a new draft agreement with Mexican tomato producers/exporters. The agreement will suspend the anti-dumping investigation and, therefore, it would avoid final antidumping duties on Mexican tomato.
Interested parties may comment on the draft suspension agreement during the next 30 days. In essence, Mexican tomato producers/exporters agreed to respect reference prices and, according to the Washington Post, 66% of tomato imports will be subject to an inspection to verify the quality of the product.
Once the suspension agreement enters into force, the US will eliminate the provisional anti-dumping duty, imposed on May 7th, 2019, and the duties paid would be returned or refunded to the Mexican tomato producers/exporters.