Dive Summary:
- Lance Jungmeyer, president of the Fresh Produce Association of the Americas, is warning that tomato prices could more than double and become "more expensive than steak" if the Obama administration terminates a 16-year-old tomato trade agreement with Mexico.
- The U.S. Commerce Department previously indicated in September they want to end the pact because it does not protect American tomato growers from the flood of below-production-cost tomatoes coming in from Mexico.
- While negotiations between the U.S. and Mexico will continue until May, Reggie Brown, head of the Florida Tomato Exchange, contends that such warnings of price increases and an imminent trade war with Mexico are "unfounded threats" that are "smacking of extortion."
From the article:
"... Terminating the tomato agreement would clear the way for Florida growers, who compete fiercely with Mexico for the U.S. winter and early spring market, to file a new anti-dumping complaint against their Mexican rivals.
Jungmeyer said such a complaint would almost certainly lead to preliminary but 'prohibitive duties' that would sharply curb or cut off Mexican supply completely, due to increased costs for U.S. importers and distributors. ..."
