A red — as in tomato — state pushes tougher trade rules for Mexico

Depending on who you believe, Thursday was either a bad day for lovers of both free trade and vine-ripened romas — a prelude to higher prices — or the first step in the renaissance of a U.S. tomato industry that has been in decline. At issue: an agreement that has long set a minimum price on Mexican tomatoes imported into the United States. At the time that the deal was reached in 1996, Florida farmers had feared being undercut by cheap produce entering the American market under the terms of the North American Free Trade Agreement. Florida growers say the agreement is no longer relevant, and asked the Commerce Department to set it aside so they can pursue an “anti-dumping” case against Mexico. If they are successful, and show that Mexican tomatoes are unfairly priced, Commerce would then impose import duties on the Mexican fruit. The Obama administration — caught between the Florida growers, U.S. retailers such as Wal-Mart that rely heavily on Mexican produce and the diplomatic intricacies of U.S.-Mexican relations — said Thursday that the agreement had to be set aside. The Commerce Department said in a preliminary decision that Florida growers, who voluntarily accepted the 1996 agreement, should be free to pursue their complaint now if they want to...more