US Rep. Vicente Gonzalez highlights the critical nature of the US-Mexico trade relationship, particularly the importation of Mexican tomatoes, as foundational to the prosperity of the North American economy and essential to sustaining jobs along the Texas-Mexico border. The Florida Tomato Exchange's request to the US Department of Commerce to end the Tomato Suspension Agreement (TSA) threatens this stability. The TSA's dissolution could introduce a 21 percent tariff on Mexican tomatoes, significantly affecting their affordability and availability in the US, thereby imposing a "tomato tax" on American consumers.
The economic repercussions for Texas could be severe, as trade constitutes 15.7 percent of the state's GDP. The termination of this agreement risks the loss of $4.53 billion in economic activity and over 32,000 jobs in Texas, according to Arizona State University economists. This scenario would also result in reduced state and county revenues, impacting public services. Nationwide, it could lead to a 52 percent increase in tomato prices due to diminished supply.
Gonzalez argues against the termination, noting the Biden Administration's efforts to lower costs for Americans and the lack of evidence supporting the Florida growers' claims of unfair pricing by Mexican producers. He warns of the broader economic damage and the potential for retaliatory tariffs from Mexico, urging the preservation of the TSA for the benefit of US businesses, workers, and consumers.
Source: riograndeguardian.com