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Mexican Tomato Growers Make Offer to Revise a Trade Deal Mexican Tomato Growers Offer New Trade Deal
(about 3 hours later)
Hoping to stave off a brewing trade war, Mexican tomato growers said on Thursday that they would agree to significant increases in the minimum price at which their products can enter the United States and to establish a system to bolster compliance and enforcement.Hoping to stave off a brewing trade war, Mexican tomato growers said on Thursday that they would agree to significant increases in the minimum price at which their products can enter the United States and to establish a system to bolster compliance and enforcement.
Their offers come as the Commerce Department considers whether to end a 16-year-old agreement between the United States and some Mexican growers that American tomato farmers say keeps the price of Mexican tomatoes so low that they can barely compete.Their offers come as the Commerce Department considers whether to end a 16-year-old agreement between the United States and some Mexican growers that American tomato farmers say keeps the price of Mexican tomatoes so low that they can barely compete.
To keep the agreement in place, the Mexican growers have proposed raising the minimum price at which they can sell a pound of tomatoes in the United States by 18 percent to 25 percent, depending on the type of tomato. And they pledged to extend the agreement to all growers in Mexico who export to the United States from the roughly 85 percent who are covered by it now.To keep the agreement in place, the Mexican growers have proposed raising the minimum price at which they can sell a pound of tomatoes in the United States by 18 percent to 25 percent, depending on the type of tomato. And they pledged to extend the agreement to all growers in Mexico who export to the United States from the roughly 85 percent who are covered by it now.
Doing that will help increase compliance with the agreement and make enforcement easier, said Martin Ley, a member of the Mexican delegation negotiating with United States trade officials and vice president of Del Campo Supreme, a family business that exported $60 million in tomatoes to the United States and Canada last year.Doing that will help increase compliance with the agreement and make enforcement easier, said Martin Ley, a member of the Mexican delegation negotiating with United States trade officials and vice president of Del Campo Supreme, a family business that exported $60 million in tomatoes to the United States and Canada last year.
“This new agreement will keep prices from hitting the floor and will keep the tomatoes that consumers in the U.S. prefer in the marketplace under a framework we can operate in,” Mr. Ley said.“This new agreement will keep prices from hitting the floor and will keep the tomatoes that consumers in the U.S. prefer in the marketplace under a framework we can operate in,” Mr. Ley said.
The current agreement sets a floor price of 21.69 cents a pound for winter tomatoes. Under the new terms the Mexicans are offering, the minimum price for winter tomatoes would be 25.68 cents to 27.02 cents a pound, depending on the variety of the tomato.The current agreement sets a floor price of 21.69 cents a pound for winter tomatoes. Under the new terms the Mexicans are offering, the minimum price for winter tomatoes would be 25.68 cents to 27.02 cents a pound, depending on the variety of the tomato.
Mexico has threatened to retaliate if the agreement ends, and more than 370 United States businesses and trade groups have sent letters to the Commerce Department warning of the costs of a trade war. Producers of things as diverse as potatoes and pork remember well the price of the last trade war with Mexico over trucking, when stiff tariffs ate into revenue and profits.Mexico has threatened to retaliate if the agreement ends, and more than 370 United States businesses and trade groups have sent letters to the Commerce Department warning of the costs of a trade war. Producers of things as diverse as potatoes and pork remember well the price of the last trade war with Mexico over trucking, when stiff tariffs ate into revenue and profits.
“Last year, the U.S. exported more to Mexico than to Brazil, Russia, India and China combined,” Patrick Kilbride of the United States Chamber of Commerce said at a news conference that businesses held this month to urge the Commerce Department to maintain the agreement.“Last year, the U.S. exported more to Mexico than to Brazil, Russia, India and China combined,” Patrick Kilbride of the United States Chamber of Commerce said at a news conference that businesses held this month to urge the Commerce Department to maintain the agreement.
The Florida tomato growers are not party to the agreement, which is between the Mexican growers and the Commerce Department. Reginald Brown, executive director of the Florida Tomato Exchange, a trade group, said he had not heard anything about the new Mexican proposals beyond what a reporter told him.The Florida tomato growers are not party to the agreement, which is between the Mexican growers and the Commerce Department. Reginald Brown, executive director of the Florida Tomato Exchange, a trade group, said he had not heard anything about the new Mexican proposals beyond what a reporter told him.
“From the grower community, there is no interest at all in sustaining an agreement,” Mr. Brown said on Thursday. “The only people clamoring to sustain it are the people it is supposed to be policing.”“From the grower community, there is no interest at all in sustaining an agreement,” Mr. Brown said on Thursday. “The only people clamoring to sustain it are the people it is supposed to be policing.”
The Mexican growers have long contended that the Obama administration signaled that it was considering ending the agreement to soothe the ruffled feathers of farmers in Florida, a crucial swing state in the presidential election.The Mexican growers have long contended that the Obama administration signaled that it was considering ending the agreement to soothe the ruffled feathers of farmers in Florida, a crucial swing state in the presidential election.
The Mexican growers also note that the official presiding over the division of the Commerce Department that is handling the negotiations, Francisco Sanchez, is from Florida. Mr. Sanchez, who is under secretary of commerce for international trade, was one of President Obama’s top fund-raisers in 2008, collecting more than $500,000 from family members and friends.The Mexican growers also note that the official presiding over the division of the Commerce Department that is handling the negotiations, Francisco Sanchez, is from Florida. Mr. Sanchez, who is under secretary of commerce for international trade, was one of President Obama’s top fund-raisers in 2008, collecting more than $500,000 from family members and friends.
“We are 100 percent sure that if this proposal is rejected, it cannot be rejected for anything other than political reasons,” Mr. Ley said.“We are 100 percent sure that if this proposal is rejected, it cannot be rejected for anything other than political reasons,” Mr. Ley said.