The agreement on fresh tomatoes imports of Mexico would reset minimum wholesale prices and strengthen anti-dumping.
The Mexico’s tomato industry made an agreement that would suspend the investigation initiated by the Florida tomato growers about a complained that Mexican producers were selling fresh tomatoes for less than the production cost.
The Florida tomato growers said that as a result of the low cost of the imports of Mexico they have lost jobs and driving prices.
US tomato growers mention that the new agreement need to address pricing, coverage and enforcement of trade law.
Florida produces an important quantity of tomatoes, especially for the winter supply. A pricing study mentions that if the Mexican tomatoes withdrew from the US market, the prices of tomatoes would double from $2.50 per lb. to nearly $5. The imports of Mexico to the US are important not only for the price also for the fair competition and quality.
The value of the US market for fresh and processed tomatoes is more than $2 billion. In the other hand Mexico’s tomato trade with US worth $1.8 billions in 2011.
Source: Arizona Daily Star