The Trading Room

(Download our newsletter in PDF: Trading Room -20190524)

NEW AGREEMENT ON THE TOMATE?

This Wednesday, associations of tomato producers and exporters submitted to the Department of Commerce a new undertaking proposal to avoid antidumping duties. Provisional antidumping duties were imposed as of May, 7.  The Underminister of International Trade, Luz María de la Mora, commented that this proposal could be accepted by June and July.

According to news outlets, the purpose of the proposal is to offer US producers more certainty about Mexican tomato imports at “market prices” that do not cause injury, according to the following undertakings:

1. Modification of the price reference.
2. Refund of 100% when the good is defective.
3. Quality control on the border.
4. Continuous compliance of certifications.
5. Implementation of a mechanism to avoid circumvention.

Producers and exporters submitted a legal remedy against the provisional antidumping duties that will be decided in the next days. If the judgment is favorable, the payment of the provisional antidumping duties will be temporarily suspended.

Sources:

https://www.eleconomista.com.mx/empresas/Exportadores-de-tomate-presentan-nueva-propuesta-a-Estados-Unidos-20190523-0093.html

https://www.jornada.com.mx/ultimas/2019/05/23/productores-aceptarian-modificacion-en-precios-del-jitomate-5912.html

CURB TO THE CHINESE INVESTMENT IN MEXICO?

This Thursday, the Chief of the President’s Office, Alfonso Romo, attended to the “71st  Assembly of the Steel and Metallic Chamber (CANACERO).

The Mexican officer shared a “story” about his conversations with the US Secretary of Commerce, Wilbur Ross, during the Forum CEO Dialogue. According to Mr. Romo, Mr. Ross requested Mexican officers and businessman to reject Chinese investment in strategic projects. The USA’s idea is to create a strong commercial block that competes with China.

Nevertheless, Mr. Romo commented that Chinese investment is welcome in Mexico. We highlight that the USA’s  request opposes the position of the current administration because Mexico has expressed that it is open to Chinese investment in important infrastructure projects, for example, the Mayan train.

Sources:

https://www.elfinanciero.com.mx/economia/eu-pidio-a-mexico-no-aceptar-inversion-china-alfonso-romo