U.S. Mexico Tomato Trade Deal Ends After Long Battle
Florida’s tomato farmers are preparing for a major industry change following the end of the Tomato Suspension Agreement with Mexico. The U.S. Department of Commerce made the decision to cancel the 2019 agreement, aiming to support domestic producers.
For years, Florida growers argued that Mexico sold tomatoes at unfairly low prices, hurting U.S. farmers. The cancellation introduces a 20.91% tariff on Mexican tomato imports starting July 14, giving American growers a chance to compete more fairly.
Robert Guenther of the Florida Tomato Exchange welcomed the change. “This decision has been affirmed multiple times now, by the U.S. government, in multiple administrations during the time period of this agreement that dumping has occurred,” Guenther explained. “Thus, there need to be penalties applied to the Mexican industry to ensure that the American tomato farmers can have a just and fair playing field.”
Since 1994, Mexican tomato imports have risen 400%, while U.S. growers lost nearly 50% of their market share. Mexico is expected to push for new trade talks and continue its strategy of placing tariffs on other U.S. goods like pork and chicken.
Meanwhile, Florida growers are also dealing with rising labor costs. Many depend on the H-2A visa program to bring in seasonal workers. While essential to farming operations, the program is becoming more expensive and complicated.
“That’s been a very successful program for the tomato industry and a lot of specialty crops and fruit and vegetables in Florida,” Guenther said. “Still, the cost of that program it continues to rise, the bureaucracy of that program continues to rise.”
As the July 14 deadline nears, farmers face both hope and challenges. The end of the agreement may mark a new era for the Florida tomato industry.