Commerce Being Lobbied From Each Side on Mexican Tomato Imports
Republican House members from the Southeast and Florida's two senators are urging the Commerce Department to stick with its plan to impose antidumping duties on Mexican tomatoes on July 14.
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"I recently met with the Florida Tomato Exchange to discuss the hardships their farmers have had to endure. The long-awaited termination of the Tomato Suspension Agreement will finally allow our farmers to compete on a level playing field," Rep. Vern Buchanan, R-Fla., said in a June 23 press release announcing his letter, also signed by 16 other House members.
A bipartisan letter, sent in May, from 14 House members and Arizona's two senators argued that domestic tomato growers have had more than 20 years of protection, since the suspension agreements include a minimum price. They argued that the declining market share for Florida field tomatoes is because consumers prefer other tomatoes, not imports. That letter included representatives from Texas, Arizona and California.
"Ports like Nogales, Arizona -- second only to Hidalgo, Texas, in volume -- serve as an economic lifeline to our states. According to economists at Arizona State University, the job losses resulting from termination of the [Tomato Suspension Agreement (TSA)] could exceed 50,000 in Arizona and Texas alone, while U.S. grocery retailers could face revenue losses surpassing $7.5 billion. Additionally, a University of Arizona study found that Mexican tomato imports contribute nearly $3.4 billion to U.S. GDP through agribusiness supply chains. In addition, removing the TSA would lead to price spikes and make a dietary staple less accessible for many Americans."
The Commerce Department issued brief summaries last week of meetings it has held with stakeholders this month, including with Mexican officials and the Florida Tomato Exchange.
Regarding the meeting with Mexico's undersecretary for international trade, Mexican growers and their distribution arms in California and the Southwest, the department said the Mexicans would like to revise the suspension agreement. "Commerce officials reiterated their concerns about the effect of the 2019 Agreement on the domestic tomato industry," the summary said.