The agreement allows the signatories to the agreement to withdraw 90 days after providing written notice to the other party.
The notice comes after the Florida Tomato Exchange in November requested Commerce end the agreement and resume the AD investigation of fresh tomatoes from Mexico and after 48 congressional lawmakers in a Feb. 1 letter urged Commerce Secretary Wilbur Ross to terminate the agreement, noting that Mexican exporters have continued to engage in unfair trade practices to gain U.S. market share.
“We have heard the concerns of the American tomato producing industry and are taking action today to ensure they are protected from unfair trading practices,” Ross said in a statement. “The Trump administration will continue to use every tool in our toolbox to ensure trade is free, fair and reciprocal.”
Commerce will continue with its AD investigation upon termination of the agreement and notify the International Trade Commission of its final determination, Commerce said. The ITC will then conduct its own investigation and make a final injury determination. An AD order will be issued if both Commerce and the ITC issue affirmative final determinations.
Despite “committed efforts” by all sides after negotiations opened with Mexican signatories in January 2018, significant issues remained regarding the crafting of a revised agreement that would be acceptable to the Mexican signatories and address the concerns of the U.S. domestic industry to the extent possible under U.S. trade law, Commerce said.