Mexico warns U.S. consumers may pay more without tomato pact

The Mexican government announced it hopes to begin talks soon with the United States to renew the bilateral agreement that regulates Mexican tomato exports. This comes after Washington said it plans to withdraw from the deal, which would result in a 20.91% tariff on most Mexican tomatoes starting July 14.

The agreement, originally signed in 1996 and last renewed in 2019, aims to prevent dumping and ensure fair competition for U.S. growers. Without it, U.S. consumers could face higher tomato prices, according to President Claudia Sheinbaum, who emphasized that Mexican tomatoes have no substitute in terms of quality or volume.

Agriculture Minister Julio Berdegué said that 90% of Mexico’s tomato exports go to the U.S., amounting to $3.3 billion in 2023. A 90-day window for negotiations is now open, and Mexico hopes to renew the deal — just as it did in 2019.

source: reuters.com

photo: mexico-now.com