Kelly: Terminating the Tomato Suspension Agreement could lead to 50,000 job losses in Arizona and Texas

PHOENIX, Arizona – U.S. Sen. Mark Kelly, and U.S. Reps. David Schweikert and Greg Stanton, all from Arizona, have warned against terminating the 2019 Tomato Suspension Agreement.

In a letter to U.S. Secretary of Commerce Howard Lutnick, the lawmakers cite a Arizona State University report which states that job losses resulting from termination of the TSA could exceed 50,000 in Arizona and Texas alone, while U.S. grocery retailers could face revenue losses surpassing $7.5 billion. 

They note that the study also found that Mexican tomato imports contribute nearly $3.4 billion to the nation’s gross domestic products through agribusiness supply chains. They say removing the TSA would lead to price spikes and make a dietary staple less accessible for many Americans.

The letter also cites a recent study by Texas A&M University found that imports of Mexican tomatoes contribute over $8 billion annually to the U.S. economy, supporting jobs across multiple sectors —retail, trucking, warehousing, packaging, and more.

The TSA suspended an antidumping duty on fresh tomatoes from Mexico in 2019. With the termination of the suspension, antidumping duties of 20.91% on most Mexican tomato imports are set to go into effect on July 14, 2025. 

The Texas International Produce Association also opposes the termination of TSA. 

“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,” said Dante Galeazzi, president and CEO of TIPA, at a press conference in Pharr last month.

In his remarks at the Pharr press conference, Galeazzi also cited the Texas A&M University report. 

“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,” Galeazzi said, quoting the A&M report.

“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.”

Tomato growers in Florida support the termination of TSA. The Florida Tomato Exchange says Mexican producers have repeatedly broken the agreement to dump artificially-priced tomatoes that have eroded American growers’ ability to compete fairly. Without meaningful enforcement, FTE says, the agreement disadvantages American tomato producers while failing to hold foreign sellers accountable. “Ending it will help restore fairness to the market and give US farmers and growers a level playing field to compete,” says Robert Guenther, executive vice president of FTE.

Kelly/Schweikert/Stanton letter

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Here is the letter from Sen. Kelly and Reps. Schweikert and Stanton to Commerce Secretary Lutnick:

May 22, 2025

The Honorable Howard Lutnick 

Secretary of Commerce, U.S. Department of Commerce

1401 Constitution Ave NW 

Washington, DC 20230

Dear Secretary Lutnick:

We write in opposition to the Department of Commerce’s recent announcement of its intent to withdraw from the 2019 Tomato Suspension Agreement (TSA) and to underscore the critical importance of cross-border trade in fresh tomatoes for the economies of several Southwestern states, including Arizona, Texas, Utah, and California.

As you know, many fresh fruits and vegetables are unavailable domestically in sufficient volume during certain months of the year. International trade, particularly with Mexico and Canada, is critical to the U.S. food supply and enables the U.S. agricultural industry to meet consumer demand for affordable, healthy, and quality fresh produce year-round. This is especially true of tomatoes. Multiple sectors have grown dependent on year-round access to tomatoes and other fresh produce varieties not grown domestically, and all Americans benefit from the hard-working grocers, restaurant staff, truckers, warehouse operators, and others who move and sell fresh produce to meet consumer demand.

A stable, mutually beneficial trading relationship with Mexico supports tens of thousands of U.S. jobs and contributes to the economic vitality of our agricultural industry across the supply chain. In fact, a recent study from Texas A&M University found that imports of Mexican tomatoes contribute over $8 billion annually to the U.S. economy, supporting jobs across multiple sectors —retail, trucking, warehousing, packaging, and more.

Ports like Nogales, Arizona—second only to Hidalgo, Texas, in volume—serve as an economic lifeline to our states. According to economists at Arizona State University, the job losses resulting from termination of the TSA could exceed 50,000 in Arizona and Texas alone, while U.S. grocery retailers could face revenue losses surpassing $7.5 billion. Additionally, a University of Arizona study found that Mexican tomato imports contribute nearly $3.4 billion to U.S. GDP through agribusiness supply chains. In addition, removing the TSA would lead to price spikes and make a dietary staple less accessible for many Americans.

Since the TSA went into effect in 2019, Commerce and the U.S. Department of Agriculture (USDA) have implemented it rigorously, and, as a result, fresh tomatoes from Mexico are among the most heavily scrutinized U.S. imports. Commerce has issued over 320 audit questionnaires, awarded over 14,000 quarterly certifications, and conducted three in-depth administrative reviews of some of Mexico’s largest growers. It speaks volumes that these comprehensive, overlapping oversight mechanisms have not found a single violation of the TSA. Additionally, since April 2020, lots inspected by the USDA at ports of entry have passed inspections with a 99 percent success rate. These metrics demonstrate how Mexican growers, their selling agents, and customers in the U.S. overwhelmingly comply with every facet of the agreement.

We recognize and support the strict enforcement of U.S. trade law, and antidumping orders play a vital role in leveling the playing field to protect American industry and workers from the effects of unfair trade practices. These orders serve as essential mechanisms for U.S. businesses and workers to seek relief from predatory pricing by foreign competitors. However, applying a one-size-fits-all approach risks undermining the intent of these trade priorities. The domestic tomato industry has benefited from over two decades of protection via minimum floor prices under successive suspension agreements. While some segments of the North American tomato supply chain have innovated to meet evolving consumer preferences, others have not. It is clear to us that imported tomatoes are not the root cause of the challenges that some portions of our domestic tomato industry face. We note that Commerce’s April 14 press release on this issue referenced being “flooded with comments” urging the termination of the TSA, and we request more information about the substantive arguments made in those comments and what efforts Commerce undertook to check the veracity of these claims.

The tact currently being taken jeopardizes the spirit of cross-border commerce with one of our key trading partners; the results of which are likely to be higher prices, reduced availability, and diminished selection and quality of products for American consumers. The effects of U.S. withdrawal would also extend into Mexico, potentially leading to decreased tomato production, job losses, and increased migration pressures. Terminating the TSA now would be profoundly disruptive and run counter to the administration’s goals.

We urge you to reconsider instituting the antidumping order on July 14, subjecting imports of tomatoes from Mexico to duties of 17.09 percent, and ask you to recognize the importance of cross-border trade and consider the full scope of economic consequences to the agricultural industry, American consumers, and the vast network of U.S. businesses and workers that rely on these imports. We look forward to working with you to resolve this vital concern by pursuing an alternative approach that addresses any legitimate concerns with the current effectiveness of the TSA while taking into consideration the effects on all U.S. stakeholders.

Sincerely,

Mark Kelly, United States Senator 

David Schweikert, Member of Congress

Greg Stanton, Member of Congress

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