A coalition of produce companies that grow, pack, ship, distribute and sell fresh produce in the U.S. has come together to highlight the critical role that the United States-Mexico-Canada Agreement plays in the industry.
“As officials from the three countries begin the required six-year review, now is a critical moment to ensure the importance of the U.S. produce industry is being highlighted and understood by officials,” a spokesperson for the organization told The Packer.
The steering committee for the Produce Coalition for USMCA comprises Driscoll’s, JV Smith Companies, Mastronardi Produce USA, Mission Produce, Nature Fresh Farms, NatureSweet, Red Sun Farms and Taylor Farms.
Members of the coalition span the U.S., Mexico and Canada, and the organization has come forward with a unified voice to help educate decision-makers on the economic and food security benefits created through cross-border trade.
A spokesperson for the coalition emphasized that maintaining tariff- and quota-free access to safe imports is fundamental to protecting U.S. food security, supporting domestic agricultural jobs and keeping grocery shelves consistently stocked.
The Reality of Integrated North American Supply Chains
“The North American produce industry is not simply a story of imports versus domestic production; it is an integrated supply chain that relies on the complementary growing seasons of the United States, Mexico and Canada,” says Red Sun Farms CEO Carlos Visconti. “Each region plays a unique role in ensuring consumers have access to fresh fruits and vegetables throughout the year.”
Skip Hulett, chief legal officer for NatureSweet, says cross-border growing operations are vital to greenhouse tomato production.
“NatureSweet’s integrated operations in Mexico are not a substitute for U.S. production; they are what makes the company’s U.S. production economically viable,” he says. “The unit economics of year-round greenhouse specialty tomato production require integrated supply chains across climate zones to maintain continuous volume and retail shelf presence.”
While growers say that this cross-border trade is critical for the North American produce industry, critics often argue it disadvantages domestic growers. Victor Smith, CEO of JV Smith Cos., says the coalition has heard there is some movement in Washington, D.C., to do away with the agreement and duty-free produce.
“It seems to be very limiting for a select few that don’t want the competition,” he notes.
The Consumer Cost of Tariffs and Border Gridlock
The coalition also argues that a Purdue University study shows that tariff reductions through the North American Free Trade Agreement and USMCA have lowered food prices per household by $700 yearly.
“How are we going to provide the year-round supply of fruits and vegetables American consumers want and maintain reasonable pricing on it so they can afford it?” Smith says. “That’s what we’re doing with these integrated supply chains.”
Smith warns that any tariffs placed on North American fresh produce will increase the cost of goods.
“Our margins are so low, we can’t absorb that,” he says. “So, we’d have to charge more for it.”
Trade Certainty Drives Domestic Investment
Coalition members emphasize that any gridlock in USMCA could have serious ramifications in the North American fresh produce supply chain.
“Unlike many other sectors, fresh produce does not have the flexibility of extended storage, delayed shipments or long production lead times,” Visconti says. “In fresh produce, timing is critical. We need to make quick decisions, remain agile and adapt in real time to ensure product reaches the market at peak quality.”
Visconti warns that even short delays could have significant impacts on growers, retailers and consumers.
“Any uncertainty or disruption caused by negotiation gridlock can create immediate challenges, from delayed planning and transportation decisions to increased risk of food waste and reduced product availability for consumers,” he says.
Bruce Taylor, chairman and CEO of Taylor Farms, says his company operates two salad plants in Mexico and employs 5,000 workers to provide a consistent supply of products to U.S. consumers.
“Any tariffs or seasonal restrictions imposed would cause these operations to close,” he says. “Our Mexican growing and processing operations are critical to Taylor Farms’ ability to maintain low prices and year-round availability for American consumers.”
Smith also employs more than 4,000 people in the Mexicali Valley and says “those are 4,000 people that have very good jobs.”
Coalition members say that if the review triggers a 10-year sunset, that legal uncertainty will impact long-term investments and regional infrastructure.
“Any business owner will tell you certainty is the biggest enabler of new investment,” Hulett says, noting the company has expanded its U.S. footprint in the last three years. “We intend to continue making investments that bolster our U.S. production, but we need certainty and fair and balanced trade in order to make those investments.”
Visconti agrees, noting that as a vertically integrated grower, Red Sun Farms will adapt and develop contingency plans to ensure reliable supplies of fresh produce, but he says “a stable and predictable trade framework provides the confidence needed to make long-term investments that benefit growers, retailers and consumers across North America.”
The coalition stresses that protecting the agreement reinforces America’s trading relationships with Canada and Mexico, two of the country’s largest agricultural exporting partners.
Smith worries any retaliatory tariffs could really jeopardize what NAFTA and USMCA built.
“If there’s retaliation by a trading partner because you’re restricting some of their exports, then it just really gets ugly and it doesn’t need to,” he says. “NAFTA has worked. It was modified a bit with USMCA, and it’s been working. And why in the world do we want to take that away from the U.S. consumers?”
