Tomatoes on a world map symbolizing trade routes between the U.S., Mexico, and Canada.

Tomato Wars: How Trade Agreements Impact Your Grocery Bill

Jordan Keane in Business & Economy August 2025 • 4 min read.

"Unpacking the U.S.-Mexican Tomato Suspension Agreement and its Ripple Effects on Consumers"

The price and availability of fresh produce are often taken for granted, but a closer look reveals a complex web of international trade agreements that significantly influence what ends up on our plates. One such agreement, the U.S.-Mexican Tomato Suspension Agreement, has been a source of ongoing debate and economic impact for consumers and producers alike.

Tomatoes are a vital export for Mexico, ranking as its second most valuable agricultural commodity. For decades, trade relations between the United States and Mexico have been strained over concerns about unfair trade practices. U.S. growers, particularly in Florida, have long alleged that Mexican tomatoes are being "dumped" on the U.S. market—sold at prices below the cost of production—harming domestic producers.

In response to these concerns, the U.S. and Mexico have engaged in a series of agreements aimed at managing the flow of tomatoes across their borders. These agreements, known as Suspension Agreements, set minimum prices for Mexican tomatoes entering the U.S. While intended to protect U.S. growers, these policies have far-reaching consequences, affecting prices, production, and consumption patterns in both countries, as well as in Canada.

What is the U.S.-Mexican Tomato Suspension Agreement?

Tomatoes on a world map symbolizing trade routes between the U.S., Mexico, and Canada.

The U.S.-Mexican Tomato Suspension Agreement is a trade agreement that sets a minimum price for fresh tomatoes imported from Mexico into the United States. The original agreement was established in 1996 to prevent Mexican tomato growers from selling tomatoes at unfairly low prices (a practice known as "dumping") in the U.S. market. This was designed to protect domestic tomato producers, particularly in Florida, who claimed that low-priced Mexican imports were harming their businesses.

The agreement has been updated and modified several times since its inception, with the most recent version implemented in 2013. These revisions often involve adjustments to the minimum price and the scope of the agreement. For example, the 2013 agreement introduced different minimum prices for various categories of tomatoes, including:

Field tomatoes
Greenhouse tomatoes
Cherry and grape tomatoes

Canada, while not a direct party to the U.S.-Mexican agreement, is significantly impacted because the U.S. minimum price policy distorts prices across the entire North American region. Understanding these dynamics requires looking at the interplay between all three countries.

The Bigger Picture: Trade, Consumers, and Your Plate

The U.S.-Mexican Tomato Suspension Agreement highlights the complexities of international trade and its direct impact on consumers. While these agreements are intended to address specific issues like unfair pricing, they create ripple effects that influence the entire market. As consumers, understanding these dynamics empowers us to make informed choices about the food we buy and to engage in discussions about trade policies that shape our world.

About this Article -

This article was crafted using a human-AI hybrid and collaborative approach. AI assisted our team with initial drafting, research insights, identifying key questions, and image generation. Our human editors guided topic selection, defined the angle, structured the content, ensured factual accuracy and relevance, refined the tone, and conducted thorough editing to deliver helpful, high-quality information.See our About page for more information.

This article is based on research published under:

DOI-LINK: 10.1017/aae.2016.26, Alternate LINK

Title: Welfare Analysis Of The U.S.-Mexican Tomato Suspension Agreement

Subject: Economics and Econometrics

Journal: Journal of Agricultural and Applied Economics

Publisher: Cambridge University Press (CUP)

Authors: Elijah Kosse, Stephen Devadoss

Published: 2016-11-01

Everything You Need To Know

What is the U.S.-Mexican Tomato Suspension Agreement and why was it created?

The U.S.-Mexican Tomato Suspension Agreement is a trade agreement setting a minimum price for fresh tomatoes imported from Mexico into the United States. It was initially established in 1996 to address concerns from U.S. growers, particularly those in Florida, who alleged that Mexican tomato producers were engaging in 'dumping'—selling tomatoes at prices below production costs. The goal was to protect these domestic producers from unfair competition, ensuring they could compete in the market. This agreement has been updated multiple times, including the most recent in 2013, which adjusted the minimum prices and specified different categories of tomatoes like field, greenhouse, cherry, and grape tomatoes.

How does the Tomato Suspension Agreement affect the price of tomatoes for consumers?

The Tomato Suspension Agreement directly impacts the price consumers pay for tomatoes. By setting a minimum price for Mexican tomatoes, the agreement reduces the likelihood of very low prices that might result from dumping practices. This can lead to higher prices for tomatoes compared to what might exist in a completely free market scenario. While the agreement aims to protect U.S. growers, the result can be less affordable tomatoes for consumers. The dynamics become even more complex considering regional variations within the U.S. and the influence of the agreement on Canadian markets due to the integrated North American trade environment.

Why does Canada get mentioned in the context of the U.S.-Mexican Tomato Suspension Agreement?

Canada is significantly affected by the U.S.-Mexican Tomato Suspension Agreement because the minimum price policy in the U.S. distorts prices across the entire North American region. As part of a closely connected trade environment, the pricing and availability of tomatoes in one country influence the others. For example, if Mexican tomatoes are more expensive in the U.S. due to the agreement, Canadian consumers might see their prices shift as well. The interconnectedness of the three countries' markets means that trade policies in one can create ripple effects throughout the others. This highlights how international trade agreements can extend beyond the direct parties involved.

What are the specific types of tomatoes considered under the 2013 version of the Tomato Suspension Agreement?

The 2013 version of the U.S.-Mexican Tomato Suspension Agreement introduced specific categories of tomatoes to account for variations in production and market dynamics. The categories include field tomatoes, greenhouse tomatoes, and cherry and grape tomatoes. By differentiating among these types, the agreement aims to apply more nuanced minimum price standards that better reflect the cost of production and market conditions specific to each type. This approach allows for a more tailored approach to regulating the trade of Mexican tomatoes into the U.S.

How do trade agreements, like the U.S.-Mexican Tomato Suspension Agreement, demonstrate the complexities of international trade?

The U.S.-Mexican Tomato Suspension Agreement exemplifies the complexities of international trade in several ways. Firstly, it shows how trade policies, designed to protect domestic producers from unfair practices, can lead to consequences such as increased consumer prices and altered market dynamics. Secondly, the agreement highlights the interconnectedness of markets, demonstrating how policies in one country, the U.S., can significantly impact others, like Mexico and Canada. Thirdly, it illustrates the ongoing debates and revisions that characterize trade agreements, as seen in the multiple updates to the suspension agreement since 1996. These complexities require a nuanced understanding of economics, politics, and the interplay between producers, consumers, and governments.