THE US Commerce Department and tomato growers from Mexico agreed to revive a 17-year-old pact governing prices for the goods, potentially averting a trade war between the two nations.

The department and Mexican producers signed a draft agreement over the weekend to prevent imports of fresh or chilled tomatoes from Mexico from being sold in the US below production costs. The department in September issued a preliminary decision to end the pricing accord, in place in various versions since 1996, after a complaint from US tomato growers.

The pact "restores stability and confidence to the US tomato market and meets the requirements of US law," Francisco Sanchez, the commerce undersecretary for international trade, said.

US tomato producers led by the Florida industry have said the trade accord, which sets a minimum price for US tomato imports from Mexico, is outdated and easily circumvented. US importers of the products wanted to keep the pact in place, saying removing it would cause domestic prices to rise. Mexican officials have said their government would consider retaliatory action.