Mexican officials are engaging in talks with the U.S. government and American growers to maintain the tariff-free status of tomato exports under the Tomato Suspension Agreement. The U.S. Department of Commerce intends to exit the agreement as of July 14, with proposed tariffs on Mexican tomatoes ranging from 17% to 21%.
Leonel Cota Montaño, Mexico's Undersecretary of Agriculture and Rural Development, emphasized, "Mexico is moving towards zero tariffs, and of course, we demand the same conditions we give to American products in Mexico." Mexican Undersecretary of the Economy, Luis Rosendo Gutierrez, and Secretary of Agriculture, Julio Berdegué, are currently conducting discussions with U.S. tomato growers in Washington.
The suspension agreement regulates the pricing and sales of Mexican tomatoes, and any alteration could impact the trade balance between countries. Mexican tomato growers have previously worked with the Trump administration in 2019 to avoid tariff disputes, agreeing not to sell below a set reference price related to market conditions.
The U.S. Department of Commerce, however, has expressed concerns that the agreement does not adequately shield U.S. growers. The department's recent statement emphasized the challenges U.S. growers face due to "unfairly priced Mexican imports." They highlighted past pressure from domestic growers urging the agreement's termination to ensure a fair competitive space.
Statistics indicate that Mexico exports 56% of its tomato production, and 99% of these exports head to the U.S. The U.S. imported approximately $3.12 billion worth of Mexican fresh tomatoes in 2024, notably influencing the overall U.S. tomato import value.
Key entry points such as the Laredo customs district in Texas and the border crossing in Nogales, Arizona, play crucial roles in tomato imports. A termination of the Tomato Suspension Agreement is expected to have broad repercussions, affecting stakeholders like the Texas International Produce Association. Their CEO, Dante Galeazzi, underscores that tomato imports support over 30,000 Texas jobs.
The Florida Tomato Exchange advocates for ending the agreement, citing longstanding grievances about unfair trade practices. FTE Executive Vice President Robert Guenther stated, "Terminating this agreement and enforcing U.S. trade laws is the only way to finally give domestic growers the relief they've long deserved."
Source: Freight Waves