Six weeks after the end of the U.S.–Mexico Tomato Suspension Agreement, growers in Mexico try to adjust to the imposition of dumping tariffs on exports to the United States, but it remains a burden, says Jorge Manuel Del Toro Chávez, general director of Finka. "The reality is that the tariffs are killing the industry," he says.
The agreement—first signed in 1996 and renewed in 2019—had paused anti-dumping duties in exchange for Mexican exporters maintaining minimum reference prices. With its termination, new duties took effect in mid-July. The U.S. Department of Commerce reinstated an anti-dumping tariff of 17% on most fresh tomato imports from Mexico. At the same time, the Mexican government increased minimum export prices for different tomato categories to preserve export viability under the new conditions.
Jorge Manuel Del Toro Chávez, general director of Finka—a Mexico-based specialist in greenhouse-grown tomatoes and cucumbers and a leading market company—explains that many growers did not expect the measure to take effect. "I sincerely believe that no one believed that it was going to happen, and the most alarming thing is that there would no longer be a negotiating table to suspend it. And this dumping tax also had the risk of being even higher."
Some growers are considering switching to peppers, but Jorge notes that this market segment already has an established supply. "This additional volume will undoubtedly affect the average annual price of this product, resulting in an auto-rate," he says. He emphasizes that the issue cannot be resolved through crop changes or by relying on fewer surviving growers. "By the time there are only a few survivors, there will be no price that can cover the debts they have acquired, and they will surely close later," he comments.
Jorge points to the need for government involvement to address the situation. "This situation must be resolved by the Ministry of Economy and the Foreign Ministry to eliminate this tax," he says.
The current pressure on the tomato sector, he explains, is affecting not only producers but also suppliers, financial institutions, and labor. Describing the current situation, Jorge warns: "The tomato industry is bleeding to death—huge losses of cash flow and profits that will not allow it to pay suppliers first, then bank debts, and finally its employees—and it is not far from a total shutdown that would bring down not only the agricultural sector but the entire chain. Stakeholders in Mexico, Canada, and the United States are present throughout the supply chain."
For more information:
https://finka.mx/