In a time where everyone seems to agree that working together to bring high paying jobs to the U.S., manage inflation, and decrease the reasons why people would illegally migrate, it’s incredible to see how the effort of a few wealthy growers in Florida could work against all this.
Since 1996, tomato growers in Mexico have been operating under a “Suspension Agreement,” ensuring managed trade of fresh tomatoes from Mexico and enabling U.S. consumers to rely on high-flavor tomatoes in their grocery stores all year-round. Among other things, the suspension agreements have established a minimum price that makes sure there is no unfair competition, and that consumers and retailers can choose in a stable market. The agreements are reviewed every five years.
In 2019, there was an update, and it was welcomed because the proposal, “for the first time,” had “useful suggestions on how to prevent circumvention.” Frequent compliance reviews are performed by the Department of Commerce, quarterly inspection data is gathered from every signatory and by the U.S. Department of Agriculture, while the U.S. Customs and Border Protection, and the Mexican government also monitor the agreement. The Department of Commerce has consistently determined that the agreement is “preventing price suppression or undercutting and can be effectively monitored.” To put it very simply, the 2019 Tomatoes Suspension Agreement is working.
Why does this matter?
The stability provided by the Suspension Agreement fuels growth in U.S.-based post-harvest industries such as logistics, transportation, warehousing, wholesale, retail, and foodservice. It fosters tens of thousands of jobs in United States and billions of dollars into the economies of Arizona and Texas, alone. All of this is driven by consumers having access to the tomatoes they prefer at a quality they expect, all year-round.
Moreover, the agreement helps mitigate migration by keeping workers employed in Mexico. Terminating this long-standing agreement, as proposed by the Florida Tomato Exchange (FTE), would have dire consequences. Imposing nearly 21% duties on Mexican tomatoes would result in a “tomato-tax,” ultimately burdening U.S. consumers and disrupting business for retailers and their supporting industries. In Arizona and Texas alone, the damages are estimated to cost 54,000 jobs and more than a $7.5 billion loss in economic activity.
FTE’s claims of circumvention by Mexican growers have been consistently debunked, with consumer preferences driving demand for vine-ripened tomatoes that are grown in greenhouses (Controlled Environment Agriculture) versus the open field green tomatoes that need to be gassed to show color, which is what Florida is known for. Protecting an inferior business would not only lead to higher inflation, and job losses in both the U.S., and Mexico, but also set a dangerous precedent for other industries. What’s next? Cucumbers, peppers, or blueberries?
The termination of the Suspension Agreement would result in higher prices, a reduced selection of tomatoes, and the loss of high-paying jobs in the U.S. Consumers currently have the freedom to choose their preferred tomatoes, but Florida growers continue to blame everyone but themselves on why consumers are choosing higher flavor tomatoes.
Ultimately, the decision should rest with consumers, not special interest groups like the Florida Tomato Exchange. Trade laws are meant to ensure a level playing field for U.S. growers, not erect barriers that consumers end up paying for. Consumers must assert their right to choose the food they put on their tables, rejecting attempts by obscure associations to protect underperforming businesses at their expense. So, the question I have for consumers is simple.
Who decides which food to put on your table? You, or the Florida Tomato Exchange?
Rodolfo Spielmann is president and CEO of NatureSweet.
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