Florida Tomato Exchange celebrates termination of U.S.-Mexico Tomato Suspension Agreement

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ROMA, Texas – While Texas and Arizona growers have been pushing to get the U.S. Department of Commerce to continue the U.S.-Mexico Tomato Suspension Agreement, their counterparts in Florida wanted it scrapped.

The 2019 Tomato Suspension Agreement is a trade deal between the U.S. and Mexico that suspended an antidumping investigation in exchange for price floors and inspection requirements on Mexican tomato imports. On April 14, the Department of Commerce sent out a press release announcing its intent to withdraw from the agreement, starting on July 14.

The termination happened on July 14, along with the imposition of tariffs on fresh tomato imports from Mexico.

Robert Guenther, executive vice president of the Florida Tomato Exchange, said:

“Today’s decision is an enormous victory for American tomato farmers and American agriculture. We’re grateful for the decisive, bold, and crucial action taken by the Trump administration to terminate the U.S.-Mexico Tomato Suspension Agreement.

“This decision will protect hardworking American tomato growers from unfair Mexican trading practices

and send a strong signal that the Trump Administration is committed to ensuring fair markets for American agriculture. Secretary of Commerce Howard Lutnick recognized that five previous agreements with Mexico had failed and that strong enforcement of U.S. trade laws is needed to protect the stability of our food supply chain.

“By standing up for American agriculture, the Trump administration has defended the rule of law and prioritized fairness in trade. This action ensures that American consumers will have more choices and higher-quality products, while strengthening America’s food system against future disruptions. We commend Commerce Secretary Howard Lutnick for his clear-eyed assessment and courageous action in finally terminating this flawed and ineffective agreement.”

The Florida Tomato Exchange’s stance on the Tomato Suspension Agreement contrasts sharply with that of the Border Trade Alliance.

Since 1986, the BTA has served as a grassroots, non-profit organization that provides a forum for discussion and advocacy on issues pertaining to border development and quality of life and trade in the Americas.

BTA President Britton Mullen said:

“The Border Trade Alliance is disappointed that the Department of Commerce has withdrawn the U.S. from the agreement that has governed U.S.-Mexico tomato trade for decades. It’s a move that not only hits shoppers in the wallet by driving up the cost of Mexican-grown tomatoes, but it injects yet more disruption into North American cross-border trade.

“We encourage the U.S. and Mexico to continue conversations with the goal of reaching a revised agreement that not only will prevent price spikes but will also preserve the hundreds of thousands of U.S. jobs that depend on the tomato trade. Without a commonsense agreement in place, we risk inflicting lasting damage on the U.S. economy.

“The BTA will continue to advocate before policymakers in both countries that trade policy should reflect the needs of consumers and the U.S. economy broadly, not the concerns of a small but vocal band of regional interests.”

Mullen pointed out that the BTA has, for several years, been a consistent voice for the maintenance of the Tomato Suspension Agreement and tariff-free agricultural trade between the U.S. and Mexico. The organization in June communicated its opposition to the dissolution of the TSA in a letter to Commerce Secretary Howard Lutnick.

Another strong supporter of the Tomato Suspension Agreement is the Texas International Produce Association. TIP hosted a press conference on the issue on Friday, July 11, at GR Fresh in south McAllen, alongside U.S. Reps. Vicente Gonzalez and state Rep. Ryan Guillen.

Dante Galeazzi, president and CEO of the Texas International Produce Association, said the impact the withdrawal will have on the U.S. economy will not be immediate, but around fall or winter time people may begin to feel the effects.

“The U.S. will really only have one producing region, which is the Southeast, to provide all of the tomatoes that the United States consumes,” Galeazzi told the Rio Grande Guardian. “That is when we will really see the price go up. The longer we stay out of the suspension agreement or the dumping duties are in place, the more likely the Mexican industry shifts away from growing as many tomatoes as they do, and that means that we fundamentally change the landscape of tomato availability in our country.”

Galeazzi also said the withdrawal will affect the U.S. job market. He said it could affect people working in shipping offices, sales, marketing, human resources, shipping and importing companies, and distributors and wholesalers. Galeazzi said 50,000 jobs in Texas are tied to the importation of tomatoes in Texas.

“Every grocery store in this country has tomatoes, so that is a loss for them as well, so it becomes this domino effect where many jobs begin to fall,” Galeazzi said. “The brunt of the lost jobs will be those of us on the border who work immediately adjacent in this or near the tomato industry.”

During the Q&A portion of the TIPA press conference, veteran broadcaster Ron Whitlock asked a question of state Rep. Ryan Guillen of Rio Grande City, who had spoken at the press conference. Guillen’s district includes the Roma International Bridge, which is the third busiest for the importation of tomatoes from Mexico.

Whitlock said if Gov. Greg Abbott has signaled his support for the Tomato Suspension Agreement, which Guillen says he has, what should he tell President Trump on his visit to Texas later that day.

Guillen responded that Trump was coming to Texas to view the damage caused by flooding in the Hill County. But, Guillen said he agreed that the issue of the Tomato Suspension Agreement should be brought up. Asked by Whitlock if Texas would face an “economic tsunami” if the agreement is scrapped, Guillen said, yes, possibly.

Later, Rep. Guillen gave this interview to the Rio Grande Guardian: