(Download our newsletter in PDF: Trading Room -20190510)
This Tuesday the Ministry of Economy issued a public statement regretting the decision of the Department of Commerce (DOC) regarding the termination of the Tomato Suspension Agreement, which was agreed by Mexican Exporters and renewed for the last time in 2013. This agreement a non-injurious export price was fixed.
The termination of the Agreement means that tomato exporters should pay/deposit a duty of 17.5% on the value when exporting tomato to the USA. Said percentage refers to the “dumping margin”, which was calculated provisionally in the antidumping investigation in the 90s. The DOC will continue to investigate and determine that the exports were made at less than fair value, the International Trade Commission will analyze whether the domestic industry was injured.
Notwithstanding, the parties will continue the negotiations for a new agreement. If it is reached, it will enter into force within 30 days and the provisional duties paid would be returned.
Last week, Mexican president, AMLO, and the Underminister of International Trade, Luz María de la Mora, announced respectively that the government is preparing new tariffs as countermeasures against agricultural, industrial and steel products from the USA. The countermeasures that are being prepared are an updated version of those imposed in response to the 232 measures against Mexican steel and aluminum. Mexico still has in force the countermeasures against certain products of US, steel, aluminum, pork meat, cheese, among others… will the new measures include temporal imports?