"We don't want tomatoes to become the new egg crisis."
So said Congressman Vicente Gonzalez, 34th District of Texas, who on Friday, spoke at a press conference with Texas State Representative Ryan Guillen, 31st District of Texas and the Texas International Produce Association (TIPA), to request a delay to the U.S. withdrawal from the 2019 U.S.-Mexico Tomato Suspension Agreement which is set to happen today. The group was advocating for a 90-day extension to the decision to further allow more consideration and resolutions for the issue.
In April, the U.S. Department of Commerce announced it would terminate the agreement, effective today. Should it be terminated, a 17 percent tariff will be imposed on all tomatoes entering the United States from Mexico.
"It's an agreement that's been in place for nearly 30 years, but more importantly, it's an agreement that works. It benefits areas like Texas, Arizona, and every American family that eats tomatoes," says Dante Galeazzi, CEO/president of TIPA. "Since 1996, the Tomato Suspension Agreement has ensured a level playing field in our industry. It has minimum prices, requires quality inspections for entry, and regulations on how you handle distressed product. This is important because it creates a level playing field for everybody in the tomato industry–growers, importers, and most importantly, consumers."
As Galeazzi notes, in April, a study via Texas A&M University illustrated how important this agreement was. "More than $8.3 billion of economic activity means that for every $1 of tomatoes imported, the U.S. receives $2.67 of economic activity. It's an investment for us to continue this."
© TIPA
L-R: Dante Galeazzi, Ryan Guillen, Vicente Gonzalez
Jobs related to tomatoes and more
He further notes that the industry supports 47,000 jobs in the U.S.--that's directly in the sector and not including peripheral positions such as banking, insurance, logistics, and more. "Texas is at the heart of this," says Galeazzi. "Last year, we crossed more than 2.1 billion lbs. of tomatoes. We are the community that will be most impacted if this agreement goes away."
Guillen noted that during the 89th legislative session in Texas, House Concurrent Resolution 108 (HCR 108) was passed and signed by the governor. "This resolution urges the U.S. Department of Commerce to continue the Tomato Suspension Agreement," says Giullen. "If the agreement were to be terminated, a 17.09 percent tariff would be reinstated, which could cost the Texas economy more than $4.5 billion in economic activity and eliminate over 30,000 jobs," he says. "Termination would raise prices for consumers and reduce access to fresh produce."
He notes that the economic fallout would hit the Rio Grande Valley particularly hard, where warehouses and freight operations thrive on tomato imports. "HCR108 reaffirms Texas's support for balanced, responsible trade policy that protects both workers and consumers. We now call on our federal partners to keep this agreement in place and preserve the stability that it brings," said Giullen.
Avoiding tomatoes turning into a crisis similar to egg pricing that was seen earlier this year is key, added Gonzalez. "This is $8 billion of economic impact, tens of thousands of jobs specifically here in Texas and Arizona, and more. We're here in a bipartisan, multi-governmental level representation. We are united on this."
"This is a tomato tax for those of us who enjoy tomatoes," says Galeazzi, adding that American families eat more than 20 lbs. of fresh tomatoes a year. "The president has shown us several times this year that you should call for pauses when your trade agreements are not fully vetted out, that you can ask for time when necessary to review. We need to give the Tomato Suspension Agreement the time and attention it is due.
For more information:
Dante Galeazzi
Texas International Produce Association
Tel: +1 (956) 581-8632
[email protected]
www.texipa.org
