San Antonio-based NatureSweet is warning that ending the U.S.-Mexico Tomato Suspension Agreement could add tariffs of more than 20% on the imports of fresh tomatoes into the U.S.
“Tomatoes imported from Mexico generate economic and social value far beyond their retail price,” Skip Hulett, vice president and general counsel for NatureSweet, said in a news release. “They support jobs, businesses, and livelihoods in local communities on both sides of the border. Terminating the suspension agreement will come at a cost that far outweighs the benefits for consumers, retailers, and agricultural workers.”
A recent study authored by Tim Richards, chair of agribusiness at Arizona State University’s W.P. Carey School of Business, analyzed the potential effects if the suspension agreement were to end, the release said. The findings demonstrate how both consumers and grocery retailers in the U.S. will be greatly impacted, according to the release.
The study, according to the release, concludes that:
- Consumers can expect to pay prices for fresh tomatoes that average 50% higher than they do today.
- Grocery retailers would earn almost $7.5 billion less in revenue.
- Texas would suffer over $4.53 billion in lost economic activity, while Arizona would see almost $3.4 billion in lost economic activity.
- Across Texas and Arizona, more than 54,000 jobs are supported by Mexican tomato imports — and those jobs could disappear if the agreement is terminated.
“Free and fair trade is critical to NatureSweet’s purpose, which is to transform the lives of agricultural workers in North America,” Hulett said in the release. “We provide year-round jobs, pay our employees almost 40% above the median wage for agricultural workers, we help our workers obtain access to improved medical care services, education programs, develop career paths, and obtain opportunities for advancement. This tariff would punish companies like NatureSweet, which are doing the right thing.”
Related news about the Tomato Suspension Agreement
• Florida Tomato Exchange: FPAA-cited study has ‘no basis’ in reality
• Study: End of suspension agreement will drive up consumer tomato prices
