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Abstract
The 2013 antidumping investigation suspension agreement introduced new categories of tomatoes
and raised reference prices of Mexican field-grown and greenhouse tomatoes by 43% and 89%.
We analyze the substitution and complementary relationships among different categories of
tomatoes grown in the United States, Mexico, and other countries and measure substitution
and income effects of reference price increases. Findings indicate that the new agreement may
decrease demand for U.S. field-grown tomatoes in favor of Mexican field-grown and Mexican
greenhouse tomatoes. Policies to increase overall U.S. tomato expenditures may be more favorable
for U.S. tomato producers than the new reference prices.