Free trade impacts

Abstract

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.