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Article Summary Essay

779 words - 4 pages

Florida and Mexico are two of the biggest providers of tomatoes, and it’s estimated that about “one out of two tomatoes eaten in the United States comes from Mexico” (Strom and Malkin). Florida tomato growers are willing to change that statistic even if it means entering into a trade war. This could become a reality if the United States Chamber of Commerce ends their 16-year tomato agreement with Mexican growers. This agreement set a minimum price that Mexican tomatoes could enter the U.S. market. But Mexico warned the U.S. that they would retaliate. They declared that the Obama administration was just trying to calm the Florida growers because they are an important state in regards to his ...view middle of the document...

Since the agreement, exports have “tripled to $1.8 billion” and the industry “supports 350,000 jobs” (Strom and Malkin). Many producers still remember the high tariffs that Mexico put on U.S. products when there was a trade fight over trucking, which lasted for about two years and ended just recently last year. During that time, a little over half a billion dollars in revenue was lost ($64 million to be exact). If another trade war began and Mexico imposed those kinds of tariffs on products such as pork, producers would lose around $14 per animal. This is already once of the most terrible financial times because grain prices are so high, but if the U.S. “lost a major market like Mexico, it would be like Armageddon” (Strom and Malkin).

If the 1996 agreement is rescinded, the economy minister of Mexico stated that he would retaliate as much as the law would allow him to. It took many growers by surprise that the announcement regarding the agreement was made a day before the Commerce Department met with Mexican tomato producers for other negotiations. Many Mexicans are scared that if the agreement ends, it would allow American growers to report unfair trade practice complaints, which happened pretty often before the agreement was...

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