The Fresh Produce Association of the Americas said it is disappointed that Florida growers have rejected the most recent proposal from Mexican growers before the ink has dried on the document. The Mexican growers submitted a new proposal to Commerce on May 22, 2019 that they claimed builds on the strongest provisions of both the previous agreement and proposals from earlier negotiation rounds. Below is a statement issued by the FPAA:
“The immediate refusal from Florida has the appearance that they have no intention of dealing in good faith. Our fear is that they are looking for total control of every aspect of the tomato supply chain and that there will be no appeasing them until they manipulate the U.S. government into getting a monopoly of the U.S. tomato market. The Florida claims of unfair trading are unfounded, and the fact that they have lost market share is largely due to the Florida tomato growers lack of innovation compared to producers in the rest of the world. They continue to push their political agenda for maximum protectionist measures at the expense of other U.S. companies and consumers, including giving distinct advantage to their repacking business model, which is unnecessary for imported vine-ripe tomatoes because they are consumer ready.
"The costs of 17.56 percent duties are only one barrier, along with mandatory cash deposits, and the punitive nature of the Commerce requirements, that are harming multi-generational American importers whose livelihoods depend on this business. Since the duties have taken effect May 7, individual U.S. companies have racked up over $100,000 apiece in duties trying to service their customers, whose supply chain has been disrupted. Many U.S. food distribution companies have already lost numerous contracts with customers and suppliers.
"A timely resolution to a new Tomato Suspension Agreement is in the best interests of American shoppers and the companies involved in selling tomatoes, and not just importers, but also retailers, wholesalers, transportation companies, foodservice suppliers, and every other industry that works with the tomato industry. In the meantime, duties pile up and some supermarkets have threadbare tomato displays because of supply chain uncertainty.
“Punitive duties are amassing that will amount to millions of dollars which will effectively be paid for by the American public, and supply chains are being disrupted because of the lack of a resolution, with consumers finding their favorite vine-ripened tomatoes gone from some supermarkets,” concluded FPAA President Lance Jungmeyer. “It is time to end the tomato dispute and remove this tax on American consumers by reaching a sensible agreement.”
For more information:
Lance Jungmeyer
Fresh Produce Association of the Americas
Ph: +1 (520) 287-2707
lance@freshfrommexico.com
www.freshfrommexico.com