Clashes continue over tomato trade agreement with Mexico

As importers argue for its preservation, Florida Republican Sen. Rick Scott has reiterated his request for the immediate termination of the 2019 Tomato Suspension Agreement.

Scott sent a Dec. 15 letter to Department of Commerce Secretary Gina Raimondo asking the agency to immediately terminate the 2019 suspension agreement on Fresh Tomatoes from Mexico. He also urged the agency to impose antidumping duties on imports of “unfairly traded Mexican tomatoes as required by law.”

“More than two months have passed since you received my initial letter, signed by 59 Members of Congress, urging termination of the Suspension Agreement,” Scott said in the letter.

“I have yet to receive a response to that letter. While you have ignored Congress, you have also allowed six weeks to pass since the comment period on this issue closed, and we have yet to receive a determination," he added. "The facts of this case have been clearly presented to the Commerce Department, and further inaction will continue to hurt American farmers.”

Scott said in the letter that “Mexico’s tomato dumping has hit small family operations particularly hard, and the impacts have been profoundly damaging to rural economies.

“After 27 years, it is clear that the loopholes in the suspension agreements being exploited by Mexican producers cannot be closed, and the domestic industry will face further material injury if necessary actions are not taken," he added.

Pushing back

Lance Jungmeyer, president of the Fresh Produce Association of the Americas, said the suspension agreement should be preserved.

“This really boils down to the fact that consumers prefer vine-ripened and specialty tomatoes,” Jungmeyer said. “We have spent 2023 working to preserve the Tomato Suspension Agreement, along with a coalition that includes major U.S. greenhouse growers, Texas International Produce Association, and others. Over 400 U.S. companies and organizations signed a letter asking the Department of Commerce to maintain the agreement.”

An analysis by Arizona State University found that if import tariffs are imposed on tomatoes because the suspension agreement is terminated, U.S. consumers can expect prices to increase by up to 52%, the FPAA said.

Jungmeyer said the facts support keeping the Tomato Suspension Agreement in place. 

“There has never been a substantive violation,” he said. “We hope to see the agreement renegotiated in 2024, on the regular five-year schedule.”

 Jungmeyer said the suspension agreement contributes over $7 billion annually to the U.S. economy and directly supports nearly 50,000 jobs in the U.S.