Mexico's government expects to open negotiations with the United States to renew a bilateral agreement on tomato exports after Washington announced its intention to withdraw from the pact, Reuters reported.

The US pullout would impose duties of nearly 20.91% on most Mexican tomato exports starting July 14, following the US Commerce Department's statement that the agreement had failed to protect domestic tomato growers from unfairly priced Mexican imports.

"There is no dumping by Mexican tomato producers," Mexican President Claudia Sheinbaum told a news conference, expressing optimism that duties would be avoided.

The agreement, which regulates Mexican tomato exports to ensure fair competition for US producers, was initially established in 1996 and last renewed in 2019 to prevent an anti-dumping investigation and resolve a tariff dispute.

"This action will allow US tomato growers to compete fairly in the marketplace," the US Department of Commerce said in a statement reported by AFP.

Mexican President Sheinbaum stated that Mexican tomatoes in the US market "are not substitutable by any other in the world" in terms of quantity or quality.

"Even if this sanction were to be applied, Mexican tomatoes would still be exported to the United States because there is no substitute. The main problem would be that tomatoes would be more expensive in the United States," Sheinbaum said.

"This process has happened many times, and Mexico has always won," she remarked on previous revisions to the tomato suspension agreement.

For his part, Agriculture Minister Julio Berdegue noted that 90% of Mexico's tomato exports go to the United States. According to official figures, Mexico exported $3.3bn worth of tomatoes last year.

"We're seeking dialogue," Berdegue said, calling antidumping investigations "common". "A 90-day window is now open, there is going to be a conversation with the United States, we are looking for this agreement to be renewed," he added.

The Commerce Department's latest move comes as President Donald Trump has imposed various tariffs on US trading partners and sectors since returning to the White House, including sector-wide tariffs on steel, aluminium and autos.