US and Mexico reach tomato deal

“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 Under Secretary for International Trade Francisco Sanchez said in a statement.

The draft agreement substantially raises the minimum “reference” price at which Mexican plum, cherry and other tomatoes can be sold in the United States and accounts for changes that have occurred in the tomato market since the original agreement, Sanchez said.

For some Mexican tomatoes, the new reference price is more than double the current such price, Sanchez said. The deal is expected to take effect on March 4, after a public comment period, he said.

Mexican Economy Minister Ildefonso Guajardo said the deal guaranteed Mexican farmers access to the U.S. market under conditions that were “fair and competitive.”

“We worked hand in hand with Mexican producers on this agreement to avoid damage to the sector,” he said.

The U.S. Commerce Department made a preliminary decision in September to terminate the 1996 tomato agreement after Florida growers complained that the arrangement no longer protected them against Mexican tomatoes sold below the cost of production.

That angered Mexican growers, who argued the pact had benefited U.S. consumers and brought stability to the North American market.

Mexican officials said the U.S. move appeared designed to help President Barack Obama carry Florida in his election battle against Republican Mitt Romney. Obama won the state in the November contest.

Mexico exports about US$1.9 billion worth of tomatoes to the United States each year. Varieties include common round, cherry, grape, plum, greenhouse and pear tomatoes. The industry says Florida producers have not kept pace with new growing techniques that produce tastier tomatoes and have propelled Mexican sales.

Four Categories

The proposed agreement spares Mexican growers from having to wage a costly legal battle against a new anti-dumping case brought by Florida producers.

It also averts the possibility of a broader trade war. U.S. business groups such as the U.S. Chamber of Commerce feared Mexico could retaliate if the United States slapped hefty duties on Mexican tomatoes.

The new pact sets reference prices for four categories of tomatoes, instead of just one under the current pact. It also broadens coverage to include essentially all Mexican growers and exporters, the Commerce Department said.

The four categories, from least to most expensive, are “open field and adapted environment” tomatoes, “controlled environment” tomatoes, “specialty loose” tomatoes and “specialty packed” tomatoes.

The agreement sets winter and summer references prices for each category. The winter prices range from 31 cents per pound for open field and adapted environment tomatoes to 59 cents for specialty packed. The summer prices range from 24.6 cents to 46.8 cents per pound.

The single reference price for all Mexican tomatoes under the current agreement is 21.6 cents per pound in the winter and 17.2 cents in the summer.

SHARE CLOSE
Blogger		Google+
Live Journal		Plurk
Stumble Upon

Tweet

	PREVIOUS ARTICLE
	Venezuela's VP accuses rival of 'conspiring' against country

NEXT ARTICLE
Town mourns for slain bus driver amid standoff

Write a Comment

Terms

Enter your comments - 3000 characters max

Type in image code

 Receive China Post promos
 Respond to this email

Submit