Killing the U.S.-Mexico tomato agreement would spell trouble for Texans
If that happens, Texans will feel the impact of this 'tomato tariff' in their grocery bills, and an untold number of Texans could find themselves out of work.
Since 1996, the U.S. has had this agreement with Mexico to prevent unfair pricing on imported tomatoes. It's not a free pass. It's a negotiated deal that protects American growers while still allowing for international trade.
Now the U.S. Department of Commerce is considering canceling the agreement and placing a 17% duty (a kind of tariff) on all fresh tomatoes coming in from Mexico. If they do, Texas loses.
Texas is a major hub for fresh produce — especially from Mexico. Nearly 300,000 U.S. jobs depend on the fresh fruits and vegetables moving through our state.
Every day, tons of tomatoes cross the border through Texas ports, destined for grocery stores, restaurants and even food banks. Ending the agreement means tomatoes will get more expensive, and that cost will trickle down to your grocery bill. Just look at Walmart, which spent the last month raising prices on other goods because of tariffs. It's not a far stretch to think a tomato tariff would do the same.
And it's not just about what you pay at H-E-B. Many Texas-based companies — trucking, warehousing, banks, insurance companies, staffing agencies, box and material providers — depend on this supply chain. If it gets disrupted, so do the paychecks of Texans who work in and around the fresh produce industry.
We support fair trade and American farmers. When Mexico was not making their payments on the water treaty, we demanded America act. But with tomatoes, that's not the case.
Mexico has not cheated on the Tomato Suspension Agreement. Nearly 30 years of annual audits and reviews by the U.S. government have shown the agreement protects fair trade and Mexican tomato exporters are following the rules. In fact, the Department of Commerce has not found a single violation in the most recent version of the agreement, and more than 99% of Mexican tomatoes have passed mandatory quality inspections at the border. In addition, research has shown that American-grown tomatoes have benefited from higher prices as a result of the agreement.
Terminating this agreement would throw out a system that works. Not to mention Mexico is likely to retaliate with tariffs of its own, further driving up grocery prices for Texans.
This isn't just about tomatoes. It's about American jobs, American food prices and American trade relationships that matter to our state. We should maintain and modernize the Tomato Suspension Agreement, not terminate it.
Whether you're a farmer, a grocer, a school teacher, a parent buying tomatoes for your family, or someone trying to stretch every dollar, our government should do what's best for Americans — and that's not increasing grocery prices or putting Texans out of work.
Dante L. Galeazzi is the president/CEO of the Texas International Produce Association.
This article originally appeared on Austin American-Statesman: Killing the tomato agreement would spell trouble for Texans | Opinion
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