U.S. Trade Representative Katherine Tai has rejected the state of Florida’s petition to conduct a 301 investigation into imported Mexican fruits and vegetables. Since the petition was filed Sept. 8, Southeastern producers have been hard hit, with Hurricane Ian making landfall in recent weeks.
“The U.S. apple industry is relieved by the U.S. Trade Representative’s decision to reject the 301 Investigation on imported fruits and vegetables from Mexico. A Section 301 investigation could have been followed by tariffs on imported produce and, in turn, retaliatory tariffs from Mexico,” Jim Bair, president and chief executive officer of the U.S. Apple Association said in a news release. “That has happened in the past where U.S. apples were the targets of retaliation. We acknowledge that other sectors of the fresh produce industry are facing their own difficult challenges, but the U.S. Trade Representative came to the correct conclusion, and we are thankful.”
Instead, the Biden Administration and USTR plans to support struggling Southeastern producers by establishing a private-sector advisory panel. The USTR will work with the petitioners and Southeastern producers to examine the issues raised in the petition and consider any further actions that may be appropriate, according to a statement from USTR. This panel will develop and share recommendations with Congress on avenues to promote the competitiveness of fresh produce in the Southeastern United States.
The original Section 301 petition was led by Senators Marco Rubio and Al Lawson of Florida and signed by 24 lawmakers, filed Sept. 8 by Rubio’s office. The petition called for U.S. Trade Representative to protect Florida growers from unfair trade practices by Mexico and requests an investigation into possible new import restrictions to Mexican agricultural products, under Section 301 of U.S. trade law. The petition required a 45 day accept or reject action, resulting in an Oct. 23 deadline.
The petition claimed Florida’s market share continues to decline because of predatory Mexican trade policies, weakening Florida’s agricultural industry over the course of 20 years.
“The claim was meritless from the onset,” Lance Jungmeyer, president of Nogales, Ariz.-based FPAA said in a news release. “USTR absolutely made the right decision to reject the baseless request from Senator Rubio, who has made this an election-year issue.”
Related news: Who’s to blame for Florida’s market decline? FPAA reacts to petition from lawmakers
Opposition to the petition cited the likelihood of undermining the U.S. and Mexico trade relationship, creating a risk of retaliatory actions and even jeopardize a key market for U.S. agricultural exports. Fresh produce groups opposing the petition wrote a letter to Representative Tai and include the Fresh Produce Association of the Americas, North American Produce Coalition and the U.S. Apple Association.
“An investigation and pressure for relief in the form of tariffs would have, once again, painted a big target on U.S. apple growers in a battle where we’re innocent bystanders. We’ve been through that before and it was very painful,” said Bair in the release. “Mexico has long been the number one market for exports of U.S. apples, and that market is growing quickly. Our exports to Mexico in 2021 totaled $349 million, up 45 percent from $241 million in 2020. Many of the 150,000 jobs supported by the apple industry would be put at risk by U.S. action that invites retaliation.”
