Mexican tomato floor prices increased to please US growers

An article in the New York Times (February 4,2013) describes an agreement between the US and Mexico to raise prices for imported Mexican tomatoes by up to twice its earlier levels. The new agreement was demanded by Florida growers to enable them to compete, and also includes coverage of a larger number of Mexican farmers and greater enforcement. But will the higher prices to enable US competition to survive result in better consumer outcomes with fresher tomatoes ? Since the agreement does not cover imports for canning or juices, will it change the mix of uses for imported tomatoes ? What other products might warrant such price agreements to preserve competitiveness ?

About aviyer2010

Professor
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