U.S. to impose tariffs on Mexican tomatoes as new pact remains elusive

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U.S. to impose tariffs on Mexican tomatoes as new pact remains elusive
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The United States will impose a 17.5 percent tariff on Mexican tomato imports st...

MEXICO CITY - The United States will impose a 17.5 percent tariff on Mexican tomato imports starting on Tuesday, as the two countries were unable to renew a 2013 agreement that suspended a U.S. anti-dumping investigation, a Mexican official said on Monday.

The U.S. Commerce Department said in early February that the United States would resume an anti-dumping investigation into Mexican tomatoes, withdrawing from a so-called suspension agreement that halted the anti-dumping case as long as Mexican producers sold their tomatoes above a pre-determined price. U.S. growers and lawmakers say that deal has failed.

“As of tomorrow a tariff of 17.5 percent will be applied on the value of the product ... Mexican exporters will be affected, it’s going to affect their financial flows but that is going to be directly transferred to U.S. consumers,” said Mexican Deputy Economy Minister Luz Maria de la Mora.“We’re very disappointed but the good news is that negotiations continue, looking for a solution. And we hope that in the coming weeks we can in fact reach an agreement,” said de la Mora.

A trade war over tomatoes was averted twice since the 1990s, most recently in the 2013 deal that put a price floor on Mexican tomatoes sold in the United States while barring U.S. growers from pursuing anti-dumping charges against Mexican exporters.

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