This study develops a three-county trade model of the United States, Mexico, and Canada to analyze the effects of the 2013 Suspension Agreement on prices, production, consumption, trade flows, and welfare in each country due to the U.S. minimum import price on Mexican tomatoes. While only the United States and Mexico are signatories to the agreement, Canada
was also included since the U.S. minimum price distorts prices across the region. Three tomato categories—field, greenhouse, and cherry & grape—are studied since each has a distinct minimum price. The overall welfare effects are positive for Mexico and Canada, but negative for the United States.
