An agreement reached between Mexico’s Economy Department and the United States Department of Commerce will provide a framework of certainty and stability for tomato growers in both countries.
“The agreement strengthens anti-dumping enforcement and resets minimum wholesale prices, after Florida tomato growers complained that Mexican producers were selling fresh tomatoes for less than the production cost,” according to Fox Latino News.
Florida produces a majority of the winter tomato supply. Florida suppliers have been reporting that Mexican suppliers are selling their produce in the United States, far below production costs.This is known as “dumping” and drives down the overall cost of tomatoes.
While the effect of the agreement on consumer preference is still undetermined, an Arizona-based trade association fears that the price of hothouse tomatoes could increase per pound. Mexico’s tomato trade with the U.S. was worth more than $1.8 billion in 2011, according to the article.
