Free trade impacts: Mexico's tomato processing industry may gain

The tomato processing industry has expanded more rapidly in Mexico than the fresh tomato industry. Export of tomato paste to the United States has doubled since 1986 and will increase still further when the US. tariff is eliminated under the Free Trade Agreement (FTA). This will permit Mexico to displace other suppliers to the U.S. market (such as Chile, Turkey and Taiwan). It will probably cause lower prices for U.S. producers as well.

(Editor's note: Most tonnage statistics in this paper are in metric tons. In a few cases, U.S. tons have been used, and so designated. For conversion purposes, 1 metric ton = 2,205 lb; 1 US. ton =2,000 lb.)