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Yahoo
2 days ago
- Business
- Yahoo
Borderlands Mexico: US ending tomato trade agreement met with praise, criticism
Borderlands Mexico is a weekly rundown of developments in the world of United States-Mexico cross-border trucking and trade. This week: US ending tomato trade agreement met with praise, criticism; Amports expands vehicle storage capacity at Mexican seaport; and CBP find cocaine in raspberry shipment from Mexico. US ending tomato trade agreement met with praise, criticism After the Department of Commerce terminated the 2019 Tomato Suspension Agreement between Mexico and the U.S. on Tuesday, reaction from trade stakeholders and public officials on both sides of the border was divided. Tomatoes sold in the U.S. from Mexico are controlled by the U.S. Department of Commerce through the suspension agreement, which sets minimum pricing and regulates sales between growers and importers. The debate centered around whether Mexico-based growers are dumping exported tomatoes into the U.S. at lower prices that undercut the domestic market. 'Mexico remains one of our greatest allies, but for far too long our farmers have been crushed by unfair trade practices that undercut pricing on produce like tomatoes. That ends today,' Secretary of Commerce Howard Lutnick said in a news release. 'This rule change is in line with President Trump's trade policies and approach with Mexico.' Along with ending the 2019 Tomato Suspension Agreement, the Trump administration has imposed a 17% duty on fresh tomatoes from Mexico. The Florida Tomato Exchange, which has been pushing for more restrictions on Mexican-grown tomatoes for years, hailed the termination of U.S.-Mexico Tomato Suspension Agreement. '[The] decision is an enormous victory for American tomato farmers and American Agriculture,' Robert Guenther, executive vice president of the Florida Tomato Exchange, said in a statement. 'We're grateful for the decisive, bold, and crucial action taken by the Trump administration. This decision will protect hardworking American tomato growers from unfair Mexican trading practices.' The Florida Tomato Exchange was established to foster cooperation among Florida's tomato growers and packers. Since 1996, the U.S. and Mexico have negotiated five separate agreements regarding tomato imports. In 2019, the Florida Tomato Exchange lobbied for stricter quality control on Mexican-grown tomatoes and more enforcement of import pricing. Mexican tomato producers signed a Tomato Suspension Agreement with President Donald Trump's first administration in 2019 to end a tariff dispute. Mexican-grown tomatoes account for nearly 70% of the U.S. market, while U.S. growers' share is currently around 30%. In 2024, the U.S. imported $3.12 billion worth of fresh tomatoes from Mexico. This accounted for the majority of the total U.S. tomato imports, which were valued at $3.63 billion, according to the Observatory of Economic Complexity and Texas A&M. The Laredo customs district in South Texas — which includes Laredo's World Trade Bridge and the Pharr-Reynosa International Bridge in Pharr — accounts for the majority of tomato imports from Mexico, followed by the border crossing in Nogales, Arizona. Mexican tomato producers signed a Tomato Suspension Agreement with President Donald Trump's first administration in 2019 to end a tariff dispute. As part of the 2019 agreement, Mexico-based growers agreed not to sell tomatoes below a reference price, a seasonably adjusted floor price at which Mexican tomatoes can't fall underneath and still be exported to the U.S. In April, the Department of Commerce said the 2019 Tomato Suspension Agreement has failed to protect U.S. growers. Jacob Jensen, a trade policy analyst at the American Action Forum, said it's unclear if tomatoes from Mexico were undercutting U.S. growers. 'While it is true that market share for domestic producers has declined over the past few decades, it is difficult to make the case that Mexico is flooding the United States with excessively underpriced tomatoes' Jensen wrote in a recent report titled, 'The Cost of a Tomato Tariff.' 'Notably, the Tomato Suspension Agreement already accounts for this by essentially setting a minimum price for fresh tomato imports from Mexico to prevent Mexican exporters from undercutting U.S. tomato producers. As such, the most likely rationale behind this move is that the Trump Administration would like to replace the import price controls to receive more tariff revenue.' Jensen said the tariffs will raise U.S. prices by roughly 8 cents per pound, resulting in a 7% increase in prices for the overall U.S. fresh tomato supply. Trade stakeholders said the end of the agreement and tariff on Mexican imports could put billions in economic activity at risk and threaten thousands of jobs in Arizona and Texas. Border Trade Alliance President Britton Mullen urged the Trump administration to continue to negotiate with Mexico. The Border Trade Alliance is a non-profit organization that advocates on issues pertaining to border development and quality of life and trade in the Americas. 'The Border Trade Alliance is disappointed that the Department of Commerce has withdrawn the U.S. from the agreement that has governed U.S.-Mexico tomato trade for decades. It's a move that not only hits shoppers in the wallet by driving up the cost of Mexican-grown tomatoes, but it injects yet more disruption into North American cross-border trade,' Mullen said in a news release. 'We encourage the U.S. and Mexico to continue conversations with the goal of reaching a revised agreement that not only will prevent price spikes, but will also preserve the hundreds of thousands of U.S. jobs that depend on the tomato trade. Without a commonsense agreement in place, we risk inflicting lasting damage on the U.S. economy.' Mexican President Claudia Sheinbaum said her administration will continue to negotiate with U.S. officials to remove the import duties imposed on tomatoes. 'We disagree with this action taken by the United States Department of Commerce,' Sheinbaum said, according to EFE Noticias. 'It's an existing agreement, one that was already attempted to be withdrawn, that was withdrawn, and that had to be reintroduced due to the impact it has on the economy and on American consumers.' Sheinbaum said Mexico will continue to export tomatoes to the U.S. 'even with the tariff, because there is no substitute.' Amports expands vehicle storage capacity at Mexican seaport Amports has invested $4.5 million in a new vehicle storage yard near the Mexican Pacific coast Port of Lázaro Cárdenas, according to Automotive Logistics. The expansion aims to enhance storage capacity and support growing OEM demand in Mexico's automotive export corridor. The yard has a vehicle storage capacity of 5,000 units. 'The goal is clear: to provide OEMs and logistics providers with a hub that combines strategic location, operational agility and high-quality standards,' Amports said in a statement. 'Lázaro Cárdenas continues to position itself as a key link in the automotive logistics chain, and Amports reinforces that vision by investing in smart, resilient infrastructure.' CBP find cocaine in raspberry shipment from Mexico U.S. Customs and Border Protection officers at the World Trade Bridge in Laredo, Texas, recently discovered alleged cocaine in a shipment of frozen raspberries. The seizure occurred on Monday, when a CBP officer referred a 2015 tractor-trailer hauling frozen raspberries for secondary inspection. CBP officers discovered 32 packages containing 74.6 pounds of alleged cocaine within the trailer's batteries. The narcotics have an estimated street value of $996,114.'The unwavering commitment and sharp instincts of our frontline CBP officers contributed to a remarkable seizure,' Port Director Alberto Flores, Laredo port of entry, said in a news release. The post Borderlands Mexico: US ending tomato trade agreement met with praise, criticism appeared first on FreightWaves. Sign in to access your portfolio

E&E News
7 days ago
- Business
- E&E News
Trump admin announces 17 percent tariff on Mexican tomatoes
The Trump administration on Monday said it was imposing a 17 percent tariff on more than $1 billion worth of tomatoes from Mexico after unilaterally ending a bilateral agreement that had managed tomato trade between the two countries since 2019. 'Mexico remains one of our greatest allies, but for far too long our farmers have been crushed by unfair trade practices that undercut pricing on produce like tomatoes. That ends today,' Commerce Secretary Howard Lutnick said in a statement. 'This rule change is in line with President [Donald] Trump's trade policies and approach with Mexico.' Members of the Florida Tomato Exchange, a growers group, began pushing in 2023 for the end of the agreement, saying it had not lived up to their hopes. They were rebuffed by the Biden administration but finally found success with the Trump administration. Advertisement However, the 17 percent anti-dumping duty that Lutnick announced Monday was lower than the 21 percent rate that the Commerce Department said in April it would impose, when it gave 90 days' notice that it was ending the 2019 deal.


BBC News
15-07-2025
- Business
- BBC News
Trump imposes 17% tariff on Mexican tomatoes
The US is imposing a 17% tariff on most tomatoes imported from Mexico with immediate effect, the government duty came into force after the US withdrew from a long-standing agreement with its southern neighbour, arguing that the deal "had failed to protect US tomato growers from unfairly priced Mexican imports".US Secretary of Commerce Howard Lutnick said that "for far too long our farmers have been crushed by unfair trade practices that undercut pricing on produce like tomatoes".Mexico rejected accusations it had dumped its tomatoes on the US market at low prices and said the popularity of Mexican tomatoes was down to their good quality. The measure is expected to lead to higher prices at supermarkets and restaurants, such as pizza parlours and Mexican pizza sauces and salsas are among the products likely to be most 70% of tomatoes consumed in the US are imported from Mexico, according to advocacy group Florida Tomato of the newly imposed tariff argue that it will encourage consumers to buy tomatoes grown in the US, thereby boosting local trade. But the Mexican economy and agriculture ministry said it would be "impossible to substitute Mexican tomatoes" given the volume imported from Mexico. The Mexican government said it would try to negotiate a new deal before its producers were hit, but also promised to help Mexican tomato growers find new markets. US tomato growers first petitioned the US government for help in 1996, arguing that they were being undercut by Mexican growers, whom they accused of dumping their tomatoes in the US at a price lower than their normal value. In order to protect its tomato growers, the US issued an antidumping order, imposing duties on imported tomatoes in order to make US tomatoes more attractive to then, the two countries have signed five agreements which suspended those tariffs in exchange for Mexico agreeing to sell their tomatoes at or above a minimum price. It is the latest of these suspension agreements - signed in 2019 - that the US has now withdrawn from. The US president has also threatened to impose 30% tariffs on all Mexican goods from 1 August. Trump said this was because Mexico, in his view, had not done enough to stop North America becoming a "Narco-Trafficking Playground".Other countries, such as Brazil and China, as well as the EU trading bloc have also been threatened with US tariffs.


Yomiuri Shimbun
15-07-2025
- Business
- Yomiuri Shimbun
US Imposes a 17% Duty on Fresh Mexican Tomatoes in Hopes of Boosting Domestic Production
The U.S. government said Monday it is immediately placing a 17% duty on most fresh Mexican tomatoes after negotiations ended without an agreement to avert the tariff. Proponents said the import tax will help rebuild the shrinking U.S. tomato industry and ensure that produce eaten in the U.S. is also grown there. Mexico currently supplies around 70% of the U.S. tomato market, up from 30% two decades ago, according to the Florida Tomato Exchange. Robert Guenther, the trade group's executive vice president, said the duty was 'an enormous victory for American tomato farmers and American agriculture.' But opponents said the import tax will make tomatoes more expensive for U.S. consumers. Mexico's Economic Secretary Marcelo Ebrard said the government would continue looking for a way to once again suspend the tariff, part of ongoing negotiations between the two trading partners. In a statement Monday, he wrote that the move would 'only affect the pockets of American consumers. 'It's unfair and against not only Mexican producers, but on the American industry. The ground that Mexican fresh tomatoes has gained in the U.S. is because of the quality of the product, not from unfair practices,' he wrote. Mexican greenhouses specialize in vine-ripened tomatoes, while Florida tomatoes are typically grown in fields and picked green. Tim Richards, a professor at the Morrison School of Agribusiness at Arizona State University, said U.S. retail prices for tomatoes will likely rise around 8.5% with a 17% duty. Jacob Jensen, a trade policy analyst at the American Action Forum, a right-leaning policy institute, said areas with a higher reliance on Mexican tomatoes could see price increases close to 10%, since it will be more difficult to replace that supply, while other parts of the U.S. could see price increases closer to 6%. 'As an industry, we are saddened that American consumers will have to pay a tomato tax, or duty, for a reduced selection of the tomatoes they prefer, such as tomatoes on the vine, grape tomatoes, Romas, cocktail tomatoes and other specialty varieties,' said Lance Jungmeyer, president of the Fresh Produce Association of the Americas, which represents importers of Mexican tomatoes. The duty stems from a longstanding U.S. complaint about Mexico's tomato exports and is separate from the 30% base tariff on products made in Mexico and the European Union that President Donald Trump announced Saturday. The Commerce Department said in late April that it was withdrawing from a deal it first reached with Mexico in 2019 to settle allegations the country was exporting tomatoes to the U.S. at artificially low prices, a practice known as dumping. As part of the deal, Mexico had to sell its tomatoes at a minimum price and abide by other rules. Since then, the agreement has been subject to periodic reviews, but the two sides always reached an agreement that avoided duties. In announcing its withdrawal from the Tomato Suspension Agreement, the Commerce Department said it had been 'flooded with comments' from U.S. tomato growers who wanted better protection from Mexican goods. 'Mexico remains one of our greatest allies, but for far too long our farmers have been crushed by unfair trade practices that undercut pricing on produce like tomatoes. That ends today,' Commerce Secretary Howard Lutnick said in a statement. 'This rule change is in line with President Trump's trade policies and approach with Mexico.' But others, including the U.S. Chamber of Commerce and the National Restaurant Association, had called on the Commerce Department to reach an agreement with Mexico. Texas Gov. Greg Abbott, a Republican, and Arizona Gov. Katie Hobbs, a Democrat, had also urged the Commerce Department to leave the current tomato agreement in place. In a letter sent to Lutnick last week, the U.S. Chamber of Commerce and 30 other business groups said U.S. companies employ 50,000 workers and generate $8.3 billion in economic benefits moving tomatoes from Mexico into communities across the country. 'We are concerned that withdrawing from the agreement — at a time when the business community is already navigating significant trade uncertainty — could lead to retaliatory actions by our trading partners against other commodities and crops that could create further hardship for U.S. businesses and consumers,' the letter said.
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Business Standard
15-07-2025
- Business
- Business Standard
US imposes 17% duty on Mexican tomatoes hoping to boost local production
Mexico currently supplies around 70 per ccent of the US tomato market, up from 30 per cent two decades ago, according to the Florida Tomato Exchange AP Washington The US government said Monday it is placing a 17 per cent duty on most fresh Mexican tomatoes after negotiations ended without an agreement to avert the tariff. Proponents said the import tax will help rebuild the shrinking US tomato industry and ensure that produce eaten in the US is also grown there. Mexico currently supplies around 70 per ccent of the US tomato market, up from 30 per cent two decades ago, according to the Florida Tomato Exchange. But opponents, including US companies that grow tomatoes in Mexico, said the tariff will make fresh tomatoes more expensive for US buyers. Tim Richards, a professor at the Morrison School of Agribusiness at Arizona State University, said US retail prices for tomatoes will likely rise around 8.5 per cent with a 17 per cent duty. The duty stems from a longstanding US complaint about Mexico's tomato exports and is separate from the 30 per cent base tariff on products made in Mexico and the European Union that President Donald Trump announced on Saturday. The Commerce Department said in late April that it was withdrawing from a deal it first reached with Mexico in 2019 to settle allegations the country was exporting tomatoes to the US at artificially low prices, a practice known as dumping. As part of the deal, Mexico had to sell its tomatoes at a minimum price and abide by other rules. Since then, the agreement has been subject to periodic reviews, but the two sides always reached an agreement that avoided duties. In announcing its withdrawal from the Tomato Suspension Agreement, the Commerce Department said it had been "flooded with comments" from US tomato growers who wanted better protection from Mexican goods. But others, including the US Chamber of Commerce and the National Restaurant Association, had called on the Commerce Department to reach an agreement with Mexico. In a letter sent last week to Commerce Secretary Howard Lutnick, the Chamber of Commerce and 30 other business groups said US companies employ 50,000 workers and generate $8.3 billion in economic benefits moving tomatoes from Mexico into communities across the country. "We are concerned that withdrawing from the agreement at a time when the business community is already navigating significant trade uncertainty could lead to retaliatory actions by our trading partners against other commodities and crops that could create further hardship for US businesses and consumers," the letter said. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)