North America: FPAA responds to anti-free-trade rhetoric
"Tomatoes are the No. 1 food export item from Mexico to the United States," said Lance Jungmeyer, President of the Fresh Produce Association of the Americas, Nogales, Az. "In this era of global trade, the U.S. government should not put up a trade barrier with Mexico, our nation’s No. 2 overall trading partner."
Not only is there a potential to disrupt trade, but consumers may find it more expensive to put tomatoes on their plate if Florida is successful in pressuring for a higher floor price, Jungmeyer said.
"In the end, consumers will only end up paying more for tomatoes. Retailers will pay
more and they will be forced to pass on those costs to hard-working families," Jungmeyer said.
Mexican tomatoes have come into the spotlight after Florida tomato growers in late June asked the U.S. Department of Commerce to withdraw from a bi-national agreement that has governed the price of imported Mexican tomatoes. Trade between the two nations has blossomed since 1996, when the Tomato Suspension Agreement was first put in place.
"Very few Americans know that some of their own jobs depend on smooth, uninterrupted trade with Mexico. About 5 percent of U.S. residents have jobs that are tied directly to Mexico," Jungmeyer said, citing the 6 million U.S. jobs that depend on trade with Mexico, according to a study publicized by the U.S. Chamber of Commerce.
Residents of Florida benefit from $7.58 billion in two-way trade between Florida and
Mexico, with more than $2 billion of that in exports from Florida to Mexico. Florida sells more than $412 million in computers and electronic goods to Mexico, according to the study.
The FPAA believes that the U.S. and Mexico simply must avoid a trade war, or else a
broad spectrum of industries would be negatively impacted, Jungmeyer said.
"U.S. distribution companies, not just in the border states of Arizona, California and
Texas, rely on Mexican tomatoes because their customers have asked for the flavor
profile and consistent volumes that the Mexican tomato industry supplies," Jungmeyer said. "A trade war would mean not only a loss of U.S. jobs throughout the U.S., but ironically it could mean consumers end up paying higher prices for the reduced offerings of tomatoes on supermarket shelves."
While FPAA itself is not a signatory to the Tomato Suspension Agreement, members of FPAA are U.S.-based importers and distributors who act as the sales agents for Mexican of tomatoes.
Supermarket chains and foodservice distributors have come to rely on the consistent availability and uniform quality that these importers provide. Any disruption to imports will have supply ramifications, Jungmeyer said.
"At this time, we need cool heads to prevail," Jungmeyer added. "Some Florida tomato growers are trying to take advantage of the upcoming U.S. Presidential elections to use this as a wedge issue. The Florida and Mexican tomato industries must co-exist for the long-haul, and using the election as a political divider is short-sighted."
The Fresh Produce Association of the Americas, Nogales, AZ, represents U.S.-based importers of fresh fruits and vegetables from Mexico.
For more information:
Lance Jungmeyer
Fresh Produce Association of the Americas
Tel: +1 520-903-4314