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Trade War Averted: US and Mexico reach deal on tomato dispute

jitomate Trade War Averted:  US and Mexico reach deal on tomato disputeEmotions have been running high on both sides of the border in the US – Mexico tomato dispute, but this past weekend the US government and Mexican growers reached a deal that would prevent a trade war.

The agreement, which will go into effect on March 4th, outlines minimum reference prices for Mexican grown tomatoes which are almost double current reference prices.

Florida tomato growers have long complained that Mexican tomatoes are sold below production costs, making it very difficult for them to compete in their own market.  Tomato exports from Mexico to the US were valued at $1.8 Billion USD in 2011.

 

 

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