A public hearing will be held in connection with the investigation on April 30, 1997. This agreement suspended a pending investigation of alleged dumping practices by Mexican shippers. Now that the season is in full swing, opinions about the floor prices are mixed. Overall the mood seems to be positive. Florida growers are satisfied that this will stop the dumping of Mexican tomatoes on the U.S. market, and the Mexican shippers think the Mexican growers will pay more attention to quality and market conditions.
Skepticism exists mainly among buyers and distributors who are faced with increased paperwork.
With respect to fresh tomatoes, shipments will get sent back since it's not profitable for buyers to procure more fresh tomatoes. This will send a message to shippers to decrease their deliveries, causing a leftward move along the supply curve which will reestablish the market equilibrium at the floor price. So much for economic theory. The question therefore remains will consumers pay for the elevated returns that growers will realize above what a perfect competition market would dictate. In the case of feed grains, the U.S. government was able to stockpile large quantities of grain from its purchases designed to maintain the price of corn and wheat.