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Puerto Vallarta News NetworkMexico & Banderas Bay Area News 

Follow-Up: Proposed Deal Ends US-Mexico Tomato War

February 5, 2013

Tomato growers are tentatively backing a proposed deal between the US and Mexico which strengthens anti-dumping enforcement and resets the minimum wholesale prices of tomatoes imported into the US

Washington, D.C. - The US and Mexico have reached a preliminary agreement which benefits Florida farmers by stopping Mexican producers from selling fresh tomatoes for less than the production cost.

The proposed agreement on fresh tomatoes imported from Mexico would strengthen anti-dumping enforcement and reset minimum wholesale prices, the US Commerce Department said. The agreement with Mexico's tomato industry would suspend an investigation initiated after Florida tomato growers complained that Mexican producers were selling fresh tomatoes for less than the production cost.

The proposal would replace a pact that's been in place for 16 years. The Commerce Department on Saturday released a draft of the agreement for public comment. Agriculture Secretary Tom Vilsack says it would allow the US tomato industry "to compete on a level playing field."

US tomato growers are tentatively backing the proposal. Edward Beckman, president of Certified Greenhouse Farmers, said the new agreement must address pricing, coverage, and enforcement of trade laws.

"We believe that the Department of Commerce and Mexico have struck a deal that meets those three tests, and we're hopeful and optimistic that we'll be able to compete under fair trade conditions," Beckman said in a statement released Sunday. "Much work remains to have the agreement fully and faithfully implemented, and continuous monitoring and enforcement will be critical."

Florida produces much of the nation's winter tomato supply, and Florida growers were asking the Commerce Department to end the fresh tomato importation trade agreement. The Florida growers claimed their Mexican counterparts have been "dumping" — selling for less than the cost of production — their product in the US, driving down prices and costing jobs. The growers' complaint had the support of farmworker representatives.

The impact of the agreement on consumers was unknown, but an Arizona-based trade association, which sponsored a pricing study, warned that if Mexican tomatoes withdrew from the US market, the prices for some hothouse tomatoes would double from $2.50 a pound to nearly $5.

Mexico's economic secretary commended his country's tomato growers on the proposed settlement on Sunday. "Congratulations to Mexican tomato producers for the agreement reached and the suspension of the US government antidumping investigation," was the statement on the Twitter account of Mexican Economy Secretary Ildefonso Guajardo.

US-produced fresh and processed tomatoes account for more than $2 billion in cash receipts. Mexico's tomato trade with the US was worth more than $1.8 billion in 2011.