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US-Mexico Tomato Disagreement Set To Be Resolved

The current trade dispute between the US and Mexico now has a solution in sight.

Mexican tomato producers struck a deal with the Trump administration to avert an anti-dumping investigation. The deal will also end the tariff dispute between the two countries and perhaps save the American consumer from rising tomato prices.

A draft accord with the US Department of Commerce will see imported Mexican tomatoes face border inspections, while specialty tomatoes face higher reference prices. The Mexican Economy Minister, Graciela Marquez, appears to have a different understanding of the accord than the commerce department. Marquez stated on Twitter that the draft agreement will keep US borders open for exports, while the commerce department said that the accord will “[have] enforcement provisions that completely eliminate the injurious effects of Mexican tomatoes, as well as price suppression and undercutting.”

The tomato dispute between the US and Mexico long predates the Trump administration and the trade wars that President Trump has been launching. This has led to long-term negotiations, the most recent round of which started in May. After Trump slapped a 17.5% tariff on Mexican tomatoes in May, tomato growers started negotiating for an end to that tariff. Those tariffs were placed on Mexican tomato imports after both sides failed to renew a previous agreement.

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