A worker separates tomatoes at a market place in Mexico City. The Commerce Department says it may well act to finish a 16- yr - old trade offer governing fresh Mexican tomatoes offered in the U.S.
A worker separates tomatoes at a marketplace in Mexico City. The Commerce Department says it might act to end a 16- year - old trade deal governing fresh Mexican tomatoes offered in the U.S.
Talk of a Tomato War is simmering in agricultural circles, immediately after the U.S. Commerce Division issued a report Thursday that recommends ending an agreement on how fresh tomatoes grown in Mexico are sold in the United States. The situation could generate an expanding trade conflict Mexican officials have explained they would retaliate to defend the tomato growers.
Produce news source The Packer says the deal " appears to be doomed." The New York Times says that Mexican officials feel tomato farmers in Florida a swing state may possibly have the Obama administration's ear this election season, as they complain that Mexican tomatoes have too huge a share of the U.S. market place.
"We are not able to sustain an agreement that is tilted incredibly heavily in favor of the import business," Reggie Brown, vice president of the Florida Tomato Exchange, tells The Packer.
But before fear of a cost hike sends you running out to acquire all the fresh tomatoes you can discover, two items are worth noting. Initial, the Commerce ruling is only preliminary. And second, it has recommended ending the tomato agreement before. So there's a probability the agency, as very well as U.S. and Mexican growers, are just staking out solid bargaining positions at this point. The group at NPR's The Salt website say they're following the story.
And it turns out the story is a convoluted a single, due to the fact the Commerce Department's stance isn't so direct as to say, "This trade offer is now null and void."
Alternatively, the agency is recommending (bear with me) the finish of the suspension of an investigation into Mexican exporters' "dumping" tomatoes on the U.S. industry. That inquiry started in 1996, the exact same year it was suspended and an agreement on charges that had been not " lower than fair market place worth " was reached.
Given that then, the agreement has been slated for the chopping block a number of instances, only to be ongoing underneath new terms soon after the antidumping investigation is suspended anew.
When that has occurred in the past, a new minimal value per pound of tomatoes is set, for each the warm and great seasons. For instance, the 2008 agreement lists a minimal bulk price tag of just above 17 cents a pound for fresh tomatoes in the course of the summer time months, and just about 22 cents per pound from October to the finish of June. The moment the terms are agreed upon, dozens of tomato growers in Mexico then sign the agreement.
The Commerce Department need to enable public comment on its preliminary ruling it has until eventually Could to attain a last decision. In the meantime, U.S. merchants and exporters of goods to Mexico are hoping that their firms don't suffer from the fallout of a prospective tomato dispute.
"I consider the truth that groups like Wal-Mart, (the Foods Marketing Institute, the Nationwide Restaurant Association) and U.S. Chamber of Commerce have weighed in surely puts the Division of Commerce on notice that absolutely everyone is watching," Lance Jungmeyer, president of the Fresh Develop Association of the Americas, tells The Packer.
Does it surprise you that the tomato is covered underneath its own trade covenants? Look at that back in 1887, U.S. tomato imports sparked what grew to become a Supreme Court situation above whether tariffs on "vegetables" also applied to what is botanically a fruit.
According to the Workplace of the U.S. Trade Representative, agricultural imports from Mexico to the United States totaled $15. eight billion in 2011, creating America's southern neighbor its 2nd - biggest supplier. In the very same yr, Mexico was the 3rd - greatest market for U.S. agricultural products, at $18. four billion.
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