Agricultural groups and Republican legislators sound on a rate of 21% that comes into effect on Monday that fresh tomato imports from Mexico, which shakes a North -American supply chain that offers billions of pounds to American consumers every year.
The core of the battle is the termination of the Tomato Suspension Agreement, a trading pact that was first signed in 1996 and last updated in 2019. The deal paused antidumping tasks in exchange for Mexican exporters who agree with Price Minima. But in April the American trade department announced that it would withdraw from the agreement, with reference to the absence to protect domestic growers against artificially approved input.
A divided tomato industry
The rate has exposed a grim gap between tomato growers. In Florida, where the majority of the overall stock of fresh tomatoes to the American farmers have been calling the move too late. They say that years of cheap import have eroded American industry.
The rate has exposed a grim gap between tomato growers. (Artur Widak / Nurphoto via Getty Images) / Getty Images)
Spencer, whose family has processed tomatoes since the 1920s, states that the lower labor costs of Mexico and less strict regulations have created an uneven playing field.
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Spencer says it is a national problem that not only influences growers and local economies in the Sunshine State, but also other states that grow in the US
Steve Longmire, owner and operator of Tennessee Homegrown Tomatoes, agrees.
“They have to stop dumping tomatoes in this country,” he said, with reference to price differences that undermine its production costs of $ 20 – $ 25 per box.
Critics: Rate will damage the prices and investments
Critics warn that repairing the duty will worry consumer prices and stunt innovation in the fast -growing greenhouse sector.
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“A rate simply takes away the financial capacity to expand American greenhouses,” said Tom Stenzel, executive director of the controlled area of agricultural alliance.
The core of the battle is the termination of the Tomato Suspension Agreement, a trading pact that was first signed in 1996 and last updated in 2019. (Istock / Istock)
Stenzel noted that 70% of the tomatoes imported from Mexico have been grown by the greenhouse and many American companies have expanded the activities in North America to keep pace with the demand. Although exporters can ask for a fee for the rates, Stenzel states that the tasks and bond requirements can take two years to come back – and those are the costs that would be passed on to American retailers and shoppers.
Although the company will try to absorb some of the costs, the reality is not that simple.
A growing share from Mexico
Mexican grown tomatoes are now good for almost 70% of the American market, an increase of 30% two decades ago. In the meantime, the share of American growers has fallen from 80% in 1996 to only 30% today. The Florida Tomato Exchange claims dumping the margins to 273% below the agreed minima, the domestic farmers continue to harm.
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“The only way to level the playing field is to terminate the agreement and force fair trade,” says Robert Guenther, executive vice president of the stock exchange.
Political pressure has risen
Republican legislators from states that depend on the import of tomatoes have joined the opposition. In a letter from June to the Commerce Department, representatives of reps argued. Andy Biggs, R-Arar., And Tony Gonzales, R-Texas, that the suspension agreement has preserved the American jobs, encouraged innovation and has prevented over regulation.
But both those who want stricter enforcement against alleged dumping and those who see rates as a threat to market stability agree on one thing: the decision can reform the tomato industry in North America for years.
