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Tags: Financial Markets | Mexico | Trump Administration | mexico | produce | consumers | trade deal

US-Mexico Produce Deal May Mean Higher Consumer Prices

corn, tomatoes, carrots, and red peppers lay on a table at a farmer's market
(Nick Ansell/AP)

By    |   Monday, 26 August 2019 05:32 PM

The truce with Mexico on imported tomatoes could mean higher prices for American consumers, reports CNN.

The Trump administration last week struck a deal with Mexico to suspend investigations into whether Mexico was "dumping" fruit at artificially low prices and lift a 17.6% provisional tariff that went into effect in May.

The pact, which has been hailed by tomato growers and farmers, will also set reference prices on tomato imports and includes a requirement that organic tomatoes be priced 40% higher than varieties that are not. It also includes quality inspections of 92% of Mexican tomato trucks at the border, which could mean an increase in prices.

"Because of the sheer volume of tomatoes shipped north from Mexico to the U.S., we can expect the inspections to create substantial delays that compromise the quality, affordability, and availability of tomatoes to American consumers and will create bottlenecks for other goods crossing the border," said Lance Jungmeyer, president of the Fresh Produce Association of the Americas, in a statement last week.

Without an agreement, prices could have spiked by at least 40%, according to an estimate by economists at Arizona State University.

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US
American consumers might be hit with higher prices, because of a truce with Mexico on imported tomatoes, CNN reported.
mexico, produce, consumers, trade deal, farmers
191
2019-32-26
Monday, 26 August 2019 05:32 PM
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