The “US Mexican Tomato Suspension Agreement,” also known as the “Tomato War,” is a dispute between the United States and Mexico on the importation of fresh tomatoes. In 1996, the US Department of Commerce initiated an anti-dumping investigation into Mexican tomato imports, alleging that they were being sold below market value in the US. This led to the implementation of a tariff on Mexican tomatoes, which resulted in retaliatory actions by the Mexican government.

In 2002, the US and Mexico reached a suspension agreement, which allowed Mexican tomatoes to be imported into the US without the imposition of anti-dumping duties, but with certain restrictions. Under the agreement, Mexican growers were required to sell their tomatoes at or above a minimum price, known as the “reference price,” to prevent them from undercutting US growers. Additionally, Mexican tomatoes had to meet certain quality standards and undergo inspections at the border to prevent the entry of diseased or contaminated produce.

The US Mexican Tomato Suspension Agreement was renewed several times, with the most recent renewal taking place in 2019. However, the agreement has faced criticism from both US and Mexican tomato growers. US growers argue that the agreement has not adequately protected them from Mexican competition and have called for a higher reference price and stricter quality standards. Mexican growers, on the other hand, argue that the agreement unfairly limits their access to the US market and have called for the removal of the reference price.

In May 2019, the US announced that it would withdraw from the agreement, citing concerns about the effectiveness of the reference price and a desire to negotiate a new agreement. This decision was met with opposition from Mexican growers and the Mexican government, who claimed that the withdrawal would harm the Mexican economy and lead to higher prices for US consumers.

In September 2019, the US and Mexico reached a new agreement, which includes a higher reference price and stricter inspection procedures. Under the new agreement, Mexican tomato growers will be required to sell their tomatoes at or above $0.31 per pound in the winter and $0.40 per pound in the summer, and the inspection rate for Mexican tomatoes at the border will increase from 20% to 50%.

The US Mexican Tomato Suspension Agreement is a highly contentious issue that has significant economic implications for both the US and Mexico. While the agreement has been renewed, it remains to be seen whether it will fully address the concerns of both US and Mexican growers and ensure fair competition in the tomato market.