The Tomato Suspension Agreement 2013: A Comprehensive Guide

The Tomato Suspension Agreement (TSA) 2013 is a trade agreement between the United States and Mexico that deals with the import of fresh tomatoes from Mexico. Signed in 2013, the TSA is a unique agreement that regulates the trade of tomatoes between the two countries and aims to protect the interests of both parties.

The Origin of the TSA

The TSA was first introduced in 1996, primarily to address American farmers` concerns over the increasing amount of imported tomatoes from Mexico. The agreement aimed to control the volume of tomatoes imported to the United States and to ensure that American farmers are not undercut by foreign competition.

However, the agreement was revised several times, and in 2012, American tomato growers accused Mexican farmers of dumping tomatoes in the United States at below-market prices, which significantly hurt their domestic tomato sales.

To avoid a costly and time-consuming lawsuit, the United States Department of Commerce and Mexican tomato growers’ associations reached an agreement in 2013, known as the Tomato Suspension Agreement.

The Provisions of the TSA

The TSA 2013 is an extensive agreement that outlines the terms and conditions for importing fresh tomatoes from Mexico to the United States. Some of the critical provisions of the agreement include:

– The agreement establishes a minimum price for Mexican fresh tomatoes sold in the United States. This price is based on the type and size of the tomato and is intended to ensure that Mexican tomatoes are not sold below the cost of production.

– The Mexican growers’ associations are required to implement a rigorous inspection and certification process to ensure that their tomatoes meet U.S. quality standards.

– The agreement establishes a mechanism for resolving disputes between the U.S. and Mexican growers. If any disagreements arise, the parties must resolve them through a neutral third-party mediator.

– The agreement allows for the adjustment of prices and quotas based on market conditions.

The Impact of the TSA

The TSA has had a significant impact on the tomato industry in both the United States and Mexico. On the one hand, American tomato growers have seen a reduction in the volume of tomatoes imported from Mexico, which has boosted their domestic sales. Additionally, the minimum price provision has helped American growers compete with Mexican growers on a more level playing field.

On the other hand, Mexican growers have benefited from the agreement’s stability and predictability, which has encouraged investment in the industry and increased exports to the United States. The agreement has also helped reduce the risk of trade disputes and the threat of anti-dumping lawsuits.

Conclusion

The Tomato Suspension Agreement 2013 is a unique and complex agreement that regulates the trade of fresh tomatoes between the United States and Mexico. By establishing minimum price levels and quality standards, the agreement has helped protect the interests of both American and Mexican tomato growers while avoiding costly trade disputes. The TSA has had a significant impact on the tomato industry and will likely continue to be an essential agreement for years to come.