Washington, Sep 29 (IANS/EFE) The US is leaning toward scrapping a 1996 tomato accord with Mexico that has provoked complaints from growers in Florida, the Commerce Department said.
Announcing a preliminary position in favour of terminating the deal, the department said it would make a final decision within 270 days.
The existing pact is known as a "suspension agreement" because the Commerce Department in 1996 halted an anti-dumping investigation against Mexico and negotiated a minimum price for imports of Mexican tomatoes.
US producers could request the imposition of tariffs on Mexican tomatoes if the agreement were to be scrapped, potentially triggering a trade war, the Fresh Produce Association of America says.
In a statement, Florida Tomato Exchange director Reggie Brown slammed the agreement as "outdated and failed" and said the Commerce Department's preliminary position was "welcome news to domestic growers".
The US imported $8.5 billion worth of farm products from Mexico last year, more than from any other nation. Tomatoes accounted for nearly a quarter of the total.
The Commerce Department announced its decision on the eve of Friday's scheduled meeting with Mexican producers, who are willing to renegotiate the pact to prevent it from being terminated.
Mexico's economy ministry said it is regrettable that the Commerce Department "hastily" changed its position without responding to an Aug 15 request by Mexican tomato growers for talks aimed at finding "a mutually satisfactory negotiated solution".
The ministry also expressed "profound concern at the negative impact this preliminary position could have on our bilateral trade relationship".
All parties involved, including the Mexican government and the Mexican tomato industry, will be able to submit arguments in defense of the agreement over the next six weeks, the ministry said in a statement.
--IANS/EFE
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