U.S., Mexico Make Tentative Tomato Deal

[Sherman A1]

WASHINGTON — Just a week after an industry trade group warned of a “tomato cliff,” the U.S. Department of Commerce announced that it has reached an agreement with Mexican tomato growers to suspend its antidumping investigation.

The updated agreement raises the floor price for fresh or chilled imported tomatoes and increases enforcement, the agency said. Under this agreement, open field tomatoes would have a base price of 31 cents per pound during the winter and 25 cents during the summer. The base price for specialty packed tomatoes would be 59 cents during the winter and 47 during the summer.

Before this deal was made, U.S. growers said that Mexican tomato growers had an unfair advantage in the market and that the previous agreement was outdated. Industry groups representing Mexican tomato growers had warned that an upfront duty at the border would drive imports out of the U.S. market and raise retail prices significantly.

“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,” Under Secretary of Commerce for International Trade Francisco Sánchez said in a media statement.


Read More: http://supermarketnews.com/produce/us-mexico-make-tentative-tomato-deal#ixzz2K0vWXb8L

[Le Taz Hot]

1. Just as long as they still

taste like cardboard, that's what's important. Seriously, if you can't grow your own, buy from a local grower. They'll be a variety with taste and one that was picked at it's peak. You'll never go back to commercial tomatoes again no matter what country they're grown in.

[pampango]

2. US, Mexico agree to end dispute over tomatoes

Trade war could have hurt many US businesses

The United States and Mexico have reached a tentative agreement on cross-border trade in tomatoes, narrowly averting a trade war that threatened to engulf a broad swath of US businesses. The agreement, reached late Saturday, raises the minimum price at which Mexican tomatoes can be sold in the United States, aims to strengthen compliance and enforcement, and increases the types of tomatoes governed by the bilateral pact to four from one.

“The draft agreement raises reference prices substantially, in some cases more than double the current reference price for certain products, and accounts for changes that have occurred in the tomato market since the signing of the original agreement,’’ Francisco Sanchez, undersecretary of commerce for international trade, said in a statement.

The agreement will be open for public comment until Feb. 11. The Commerce Department estimated it would go into effect March 4. Estimates are that nearly one of every two tomatoes eaten in the United States comes from Mexico.

The Mexicans enlisted roughly 370 US businesses, ranging from retailers to various meat and vegetable producers, to argue their cause. Those businesses feared a bitter trade war like the one the Mexicans waged over trucking, which imposed stiff tariffs on US goods headed south.

http://bostonglobe.com/business/2013/02/04/mexico-settle-potential-trade-war-over-tomatoes/V4UnHU7wWFuVc0FIybgxVL/story.html

Sounds like Mexico agreed to the US position that the 'base price' of tomatos will be raised by about 50%.