U.S., Mexican Tomato Growers Reach Agreement


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Mon. February 4th, 2013

<p style="text-indent:0px; line-height:12px;"><span style="font-weight:bold;">Washington D.C-</span><hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding">By ANUK Staff<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding">2.4.13</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding"><p>Mexican tomato growers and the U.S. government reached a tentative agreement on Saturday that reduces the likelihood of a trade war in the wake of a U.S. decision last year to pull out of a 1996 bilateral tomato trade pact.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding"><img src="https://cdn.andnowuknow.com/legacyWriterImages/tomato_body01.jpg" alt="Cropped Images 02042013" /><hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding">"I am pleased that we were able to come to an agreement on fresh tomato imports from Mexico that restores stability and confidence to the U.S. tomato market and meets the requirements of U.S. law,” U.S. Commerce Undersecretary for International Trade Francisco Sanchez said in a statement.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding">The tentative agreement raises the minimum reference price at which the Mexican plum, cherry and other tomatoes can be sold in the United States. The agreement also accounts for changes that have occurred in the market since the original, said Sanchez.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding">The new reference price is more than double the current price for some Mexican tomato varieties. The changes are expected to be implemented on March 4, after a public comment period, according to Reuters.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding">Mexican Economy Minister Ildefonso Guajardo said the deal guaranteed Mexican farmers access to the U.S. market under conditions that were "fair and competitive."</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding"><p>"We worked hand in hand with Mexican producers on this agreement to avoid damage to the sector," he said.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding"><img src="https://cdn.andnowuknow.com/legacyWriterImages/tomato_body00.jpg" alt="Cropped Images 02042013" /><hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding">In September, the U.S. Commerce Department made a decision to terminate the 1996 tomato agreement after discontented Florida growers complained that the arrangement no longer protected them against Mexican tomatoes sold below the cost of production. The decision angered Mexican growers who argued that the pact had benefitted U.S. customers and brought stability to the North American market.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding">Mexico exports about $1.9 billion worth of tomatoes to the U.S. each year. Mexican growers say Florida producers have not kept pace with new growing techniques that produce tastier tomatoes and have propelled Mexican sales.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding">Good trade relations with Mexico are of the utmost importance – poor trade relations could have consequences for the entire industry.</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding"><p><a class="btn btn-sm btn-primary col-lg-12" style="white-space: normal;" href="http://www.floridatomatoes.org/" target="_new">Florida Tomato Committee</a></p><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding">