Tomato negotiations continue but end of agreement is reality

The Department of Commerce sent what one Florida source called a “new and constructive proposal” to Mexican tomato exporters on May 3.

However, one distributor in Nogales said late the afternoon of May 6 that no deal has been struck yet between Mexican growers and the Department of Commerce.

While one source in Florida said the industry was looking forward to hearing the Mexican response to the proposal, there is an expectation that the Commerce Department will terminate the suspension agreement May 7, as it has earlier indicated it will do.

There is nothing preventing negotiations for a new suspension agreement from continuing after May 7, the source pointed out.

The Nogales distributor said that handlers there will continue to abide by the suspension agreement until there is a notice published in the Federal Register confirming the end of the agreement.

It will be interesting to watch the f.o.b. tomato market it the wake of the termination of the suspension agreement. The Nogales distributor said tomato prices were firming for vine-ripes on May 6.

Here is some coverage on the state of things I found on the web tonight:

Tomato agreement changes impact for Arizona distributors

Even with Mexican tomato agreement some duties likely still coming

Earlier  Packer coverage here: 

Panel urges industry to be prepared for disruptions