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An economic analysis of the fresh winter tomato trade dispute between the United States and Mexico: A material injury determination for the United States tomato industry using the CADIC model
Abstract
Traditionally, Mexico has had competitive and comparative advantages in its fruit and vegetable sectors. The main market for those products has been the U.S. Mexico's export potential is increased further because the protection reached for the fruit and vegetable sectors under NAFTA. Mexican produce exports into the U.S. winter market had a considerable increase in the last months of 1995 and three quarters of 1996. Because of these sudden increases, Florida growers requested from the U.S. Administration, Congress and Senate to put into effect seven different trade protection measures in order to stop fresh tomato imports from Mexico. From such protection measures, the antidumping investigation against fresh tomato imports coming from Mexico into the U.S. was the hardest one faced by Mexican officials and Mexican tomato growers. This study was carried out in order to determine whether the United States Department of Commerce (USDOC) and the United States International Trade Commission (USITC) staff found valid and reliable indications that an industry in the U.S. was materially injured by imports from Mexico of fresh tomatoes that were sold in the U.S. market at less than fair value (LTFV). It can be concluded in this study, that U.S. antidumping laws have worked in a protectionist direction that have favored U.S. domestic producers and have gone against foreign producers, foreign exporters, U.S. consumers and U.S. importers. The previous fact may represent a serious problem for the U.S. in the future. With the U.S. being the world's leader in dumping technology, many countries around the world are copying U.S. antidumping laws in drafting their own national dumping procedures. Therefore, during the coming years U.S. domestic products going abroad will face similar protection measures as the ones faced nowadays by foreign products coming into the U.S. market.
Subject Area
Agricultural economics
Recommended Citation
Almonte-Alvarez, Jaime, "An economic analysis of the fresh winter tomato trade dispute between the United States and Mexico: A material injury determination for the United States tomato industry using the CADIC model" (1997). ETD collection for University of Nebraska-Lincoln. AAI9819688.
https://digitalcommons.unl.edu/dissertations/AAI9819688