US ends tomato pact with Mexico

Date:10-09-2012

The U.S. Commerce Department took action and ended a 16-year-old tomato trade agreement with Mexico that growers said didn’t protect them from Mexican tomatoes sold below the cost of production in the U.S.

The Commerce Department said that a final decision on the Mexico-U.S. agreement will be reached in about nine months. According to critics, the 1996 trade agreement has stabilized the U.S. tomato market and consumers benefited as a result.

Reports indicate that ending the agreement would make way for U.S. growers to seek antidumping duties. The result could lead to higher prices for Mexican tomatoes sold in the U.S.