NAFTA AGRICULTURE FACT SHEET:
Fresh Tomatoes

TREATMENT OF TARIFFS:

• Upon enactment of the NAFTA on January 1, 1994, several new U.S. tariff lines were created for tomatoes, including two new lines for cherry tomatoes.
• Two periods are covered by a special agricultural safeguard, which is designed as a seasonal tariff-rate quota. Under the safeguard, a certain quantity of U.S. imports from Mexico enters at the NAFTA preferential tariff rate, while the amount in excess is assessed the lower of the current MFN rate or the MFN rate in effect when the quantity is reached.
• These seasonal quotas grow at a compounded 3-percent annual rate over the transition period. The quota quantity for the November 15, 1997-February 28, 1998 period is 188,277, and is 186,272 for the March 1-July 14, 1998 period.
• Mexico matched the U.S. tariff line changes and specific duties. Mexico's new specific duties are being phased out over the applicable transition period. During the transition period, the duty assessed on U.S. imports cannot exceed Mexico's 10-percent ad valorem duty. Mexico does not apply the safeguard on tomatoes.

The U.S. phaseout schedule and safeguard quotas are as follows:

Item	        Season	             Base tariff	Phaseout	Safeguard base 1/

Tomatoes	Mar. 1-July 14	     4.6 cents/kg	 10 years	165,500 mt

Tomatoes	July 15-Aug. 31	     3.3 cents/kg	 5 years	N/A

Tomatoes	Sept. 1-Nov. 14	     4.6 cents/kg	 5 years	N/A

Tomatoes	Nov. 15-Feb. 28/29   3.3 cents/kg	 10 years	172,300 mt

Cherry tom.	May 1-Nov. 30	     3.3 cents/kg	 5 years 2/	N/A

Cherry tom.	Dec. 1-Apr. 30	     3.3 cents/kg	 Immediately	N/A

1/ Increases 3 percent annually, compounded. MFN rates are currently below the base rates. N/A = not applicable.
2/ Duty free on January 1, 1998.

TREATMENT OF QUANTITATIVE RESTRICTIONS:

There are no quantitative restrictions affecting trade in tomatoes. A U.S. suspension agreement currently in effect for most Mexican imports provides that Mexican tomato growers will not sell at less than the minimum import price of $5.17 per 25-pound carton (about $0.21/lb) FOB Nogales/San Diego/Laredo.

U.S. Tomato Trade with Mexico

Calendar Year	1990	1991	1992	1993	1994	1995	1996
Export Value	2,130	4,295	9,734	10,178	13,933	1,381	1,875
Export Volume	4,848	7,944	15,598	17,650	21,896	2,283	2,561
Import Value	370,556	248,883	133,166	304,079	315,449	406,081	580,348
Import Volume	352,312	353,577	183,116	400,494	376,032	593,064	685,677

Value in $1,000; volume in metric tons.

Last modified: Friday, November 18, 2005