Tomato Wars: A Discussion of How International Trade, Structural Changes, and Competitiveness Affect the North American Produce Industry

Abstract

The demand for a variety of fresh fruits and vegetables, including fresh market tomatoes, has increased significantly over the past decade because of greater convenience in use, improved selection, and rising health and diet concerns. As U.S. demand for tomatoes and other horticultural crops strengthens, inexperienced domestic and international suppliers believe they can compete effectively within U.S. markets. Free trade agreements have reduced monetary barriers to trade, but remaining impediments, such as institutional and competitive market constraints, represent significant challenges for southern U.S. growers. This paper discusses points addressed by VanSickle, Eastwood, and Woods concerning trade and horticultural market development.

A Seasonal Inverse Almost Ideal Demand System for North American Fresh Tomatoes

“…The USITC is responsible for determining “likeness of products” and in doing so must answer basic questions, such as whether imported and domestic products are alike in all respects (Estes 2003). However, the USITC relies almost exclusively on subjective comparisons of industry characteristics.…”