Mexico and the United States expect to reach agreement on a new bilateral tomato trade pact by the end of the month, Mexico’s Economy Minister Bruno Ferrari said this week, as reported by Reuters. In September, The White House responded to pressure from Florida tomato growers to end the 16-year trade arrangement with Mexico with the Commerce Department announcing a preliminary decision in favor of terminating the arrangement.

There is concern that a failure to reach an agreement on the tomato trade issue could have a spill-over impact on other bilateral trade issues, such as the possibility of Mexico actually applying the anti-dumping duties on U.S. chicken leg quarters, rather than to continue to hold the duties in suspension.

“There have been important advances in these meetings,” Minister Ferrari told reporters, referring to a series of meetings this week between representatives of Mexican and U.S. growers.  “I would expect that if we carry on as we are, we should be ending negotiations before the end of the month.”  Ferrari said the two countries agree on two of three points of contention.  According to Mexican business sources, Reuters reported that the final hurdle remains the minimum price, although both countries have agreed on the packing of Mexican tomatoes and what percentage of exports would receive bargain pricing from the current 85 percent to Mexico’s desired 100 percent.  The arrangement will remain active for no more than 270 days after September’s Commerce Department decision.

Tomatoes are Mexico’s chief agricultural export to the United States, and in 2011, Mexico sent $1.88 billion worth of tomatoes to the United States, up from $580 million in 1996.  Mexican growers enjoy the stability provided by the agreement and offered to renegotiate it in the hopes of avoiding a costly new anti-dumping complaint filed by Florida producers.