A coalition of U.S. tomato farmers and distributors is pushing to eliminate a cross-border agreement they say has failed to stop Mexican producers from gutting their business. They also want to replace the trade pact with a stiff tariff.
However, San Antonio-based company NatureSweet isn’t among them. The producer grows tomatoes and other vegetables in Mexico for distribution across the U.S. It claims a move like this would be a disaster, both for its business and consumers.
On one side are growers represented by the Florida Tomato Exchange, which is imploring the U.S. Department of Commerce to end the 2019 Tomato Suspension Agreement that sets a minimum price and other requirements for imported tomatoes. The trade group contends the agreement has failed to stop Mexican growers from dumping tomatoes.
On the other side are companies like NatureSweet, which grows tomatoes and other vegetables in Mexico and sells them through retailers across the United States, Mexico, and Canada. They argue that they are providing the produce customers want, such as vine-ripened tomatoes, in a climate that is favorable to producing more varieties at lower costs. Quashing the suspension agreement would mean most Mexican producers would have to pay a 20.91% tariff on tomato imports, which could lead them to raise prices, lay off workers, and reduce the varieties they grow. It could also spark a trade war.
Source: expressnews.com