By Jamie Martin
Florida’s tomato industry is entering a major shift as the U.S. Department of Commerce ends the 2019 Tomato Suspension Agreement with Mexico.
This long-standing trade deal, aimed at regulating tomato imports, is being rolled back to help domestic farmers compete fairly in the market.
Robert Guenther, executive vice president of the Florida Tomato Exchange, shared the growers’ reaction. “This decision has been affirmed multiple times now, by the U.S. government, in multiple administrations during the time period of this agreement that dumping has occurred,” Guenther explained. “Thus, there need to be penalties applied to the Mexican industry to ensure that the American tomato farmers can have a just and fair playing field.”
If changes proceed as planned, a 20.91% tariff on most Mexican tomato imports will take effect starting July 14. Under the previous agreement, U.S. growers lost nearly half their market share while imports from Mexico surged over 400% since 1994.
While this decision brings optimism, uncertainty remains. Mexico intends to renegotiate and maintain similar tactics, like applying tariffs on U.S. pork and chicken.
Florida growers also face other challenges. Labor remains one of the highest expenses in the tomato sector. The H-2A visa program, which supplies seasonal workers, is essential but costly and burdened by complex regulations. “That’s been a very successful program for the tomato industry and a lot of specialty crops and fruit and vegetables in Florida,” Guenther noted. “Still, the cost of that program it continues to rise, the bureaucracy of that program continues to rise.”
The outcome of this trade shift, along with labour concerns, will define the future of Florida tomatoes. With the Commerce Department’s 90-day clock ticking, the next few months may reshape North America’s tomato market.
Photo Credit: gettyimages-bastetamn
Categories: National