U.S. to End Mexican Tomato Pact, Raising Risk of Trade War
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The U.S. decided to end an accord that for 16 years set prices for Mexican tomato imports, siding with Florida farmers over the objections of Mexico’s government and produce buyers who have warned of a trade war.
Florida tomato farmers joined by colleagues in other states said the 1996 deal, adopted in place of an anti-dumping investigation, is outdated and ineffective. Buyers of tomatoes such as Wal-Mart Stores Inc., the world’s largest retailer, wanted to keep it in place, saying it promotes price stability.