WASHINGTON - The US government andMexican tomato growers reached a tentative agreement on Saturdaythat reduces the threat of a costly trade war stemming from aUS decision last year to pull out of a 1996 bilateral tomatotrade pact.
"I am pleased that we were able to come to an agreement onfresh tomato imports from Mexico that restores stability andconfidence to the US tomato market and meets the requirementsof US law," US Commerce Under Secretary for InternationalTrade Francisco Sanchez said in a statement.
The draft agreement substantially raises the minimum"reference" price at which Mexican tomatoes can be sold in theUnited States and accounts for changes that have occurred in thetomato market since the original agreement, Sanchez said.