(MENAFN) A tentative agreement was reached between the US government and Mexican tomato growers, sparing both countries from an expensive trade war, Reuters reported.
In September, the US Commerce Department made a preliminary decision to terminate the 1996 tomato agreement after Florida growers complained that the arrangement no longer protected them against Mexican tomatoes sold below the cost of production.
That angered Mexican growers, who argued the pact had benefited US consumers and brought stability to the North American market.
US Commerce Under Secretary for International Trade Francisco Sanchez said that the agreement states a radical increase of the minimum "reference" price at which Mexican plum, cherry and other tomatoes can be sold in the US.
He added that this accounts for changes that have occurred in the tomato market since the original agreement.
For some Mexican tomatoes, the new reference price is more than double the current such price, Sanchez said.
He expected the deal to take effect on March 4, after a public comment period.
Mexican Economy Minister Ildefonso Guajardo said the deal guaranteed Mexican farmers access to the US market under conditions that were "fair and competitive."
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