The United States and Mexico said Wednesday they have reached a deal to end US tariffs on Mexican tomatoes, imposed amid a surge in trade tension between the neighbors. The US imposed the 17.5-percent tariffs in May, after the countries failed to renew an agreement that suspended a US anti-dumping investigation first opened 23 years ago.
"After intensive discussions with all parties, we initialed a new draft suspension agreement with the Mexican growers late last night (Tuesday). This draft agreement meets the needs of both sides and avoids the need for antidumping duties," US Secretary of Commerce Wilbur Ross said in a statement. The Mexican economy ministry meanwhile expressed its "satisfaction" over the deal, which it said included the full reimbursement of tariffs paid by Mexican tomato growers. The US Commerce Department said the draft deal would now be put to a 30-day review period, and signed on September 19 if both sides still agree.
Mexico, which supplies half the fresh tomatoes consumed in the United States, had estimated the tariffs would cost its exporters more than $350 million a year.
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