Galeazzi: Modernize, don’t scrap, the Tomato Suspension Agreement

Good morning, and thank you everyone for joining us today in South Texas as we talk about a very important topic – whether a tomato is a fruit or a vegetable. Just kidding. 

We are here though to talk about a very important topic which does have to do with tomatoes. And that’s the importance of the Tomato Suspension Agreement. 

As you know, the US Department of Commerce has initiated their intention to withdraw from this agreement. An agreement which has been in place for nearly three decades, but more importantly, an agreement which works!

Since 1996, the Tomato Suspension Agreement has been a success. It has delivered enforceable floor prices; it now includes pre-entry USDA inspections and guidelines for handling distressed product. This framework has protected all parties – including US growers. 

Just this week, Texas A&M released an economic impact analysis of fresh Mexican tomatoes imported by the United States. This report is live on the university’s Center for North American Studies site. What the report shows is WHY we have gathered you all here today. 

The report points to the Mexican tomato industry providing an $8.33 billion impact. Economic impact in 2024. Let me say that again – $8.33 billion of United States of America economic impact. To give you some perspective, our country imported $3.12 billion of fresh tomatoes from Mexico. That means, for every $1 imported, our country receives 2.67 of US economic activity.

This industry supports nearly 47,000 jobs, according to that report. And that’s just in the importing and marketing space. That doesn’t include the ecosystem of adjacent partners like trucking companies who haul the fruit, or the box companies, the pallets, the software, the banking, the insurance, the first, the food safety personnel. Don’t forget all the government jobs, such as inspectors and federal personnel working the ports of entry that will have to adjust to reduced volumes. The impact of this industry and the number of US jobs it provides is a huge driver to our region. 

Did you know that last year, Texas crossed 2.1 9 billion pounds of fresh tomatoes from Mexico? That’s more than half of all the tomatoes Mexico sent to the US. More directly, that means Texas is providing 47% of all the tomatoes eaten in the United States. One point three billion pounds crossed right here in Pharr. Down the road, our friends in Roma, who have only recently begun operations, are already the third largest Texas crossing point for these tomatoes – having crossed almost 200 million pounds. Tomatoes is big business for them, and is big business for Texas. 

If this agreement goes away, our state is going to suffer. Our region is going to pay the price.  That ecosystem of adjacent industries, industries I talked about… that’s our local community. Those are US, jobs held by US citizens across sectors of US business who will suffer so that a few handlers in another state can get better control of market conditions.

We are calling on the administration and the US Department of Commerce to instead modernize the agreement. We support bilateral agreements and enforcement. Especially when it involves our closest trading partner – Mexico. We support raising standards to meet today’s production practices.

But we cannot stand silently if the current proposal is a path to dismantle a functioning agreement that has protected not only trade – it has provided jobs and equal is important, it has given American consumers access to a wide variety of flavorful, healthy and competitively priced fresh tomatoes. Floridian production simply cannot satisfy the existing market demand for either volume or assortment. So why on earth are we talking about taking away health and nutrition from Americans? 

We must modernize the TSA, not tear it apart. 

Because if this agreement goes away, the economic consequences will be immediate. It will unravel not only the vertically integrated US companies and supply chain, but it will also fundamentally change America’s relationship with tomatoes. 

So we call on commerce to consider maintaining and instead renegotiating this agreement and finding the best possible outcome, just as the administration has done on other fronts. 

And we ask that those listening today share this message with their elected officials. Tell them we need access to more fresh produce, not less. For the sake of our health, for the sake of our communities, economic well being… and let’s face it, for the sake of our taste buds.

Editor’s Note: The above guest commentary was provided by Dante Galeazzi, president and CEO of the Texas International Produce Association, at a press conference held in south Pharr in support of the Tomato Suspension Agreement. 

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