The United States terminated the 2019 U.S.-Mexico Tomato Suspension Agreement on July 14, a decision that will impose a 17.09 percent tariff on fresh tomatoes imported from Mexico. While industry organizations such as the Texas International Produce Association, as well as politicians, requested a 90-day extension to continue negotiating the agreement, is it possible that other solutions have not yet been fully explored?
"We feel there is a solution that would both protect the Florida growers as well as the U.S. tomato industry as a whole," said Skip Hulett, NatureSweet's chief legal officer, at the end of week 28. In a recent post on LinkedIn, he wrote, "The solution isn't punitive tariffs–it's smart, forward-looking policy. We urge lawmakers to focus on investment incentives for domestic greenhouse expansion, immigration reform to secure a reliable agriculture workforce, and public-private partnerships that support modern farming methods."
As he notes, the U.S. greenhouse-growing industry provides about 35 percent of the fresh tomatoes now. "We are trying to make sure our voice is heard and that the government takes into account the importance of what we believe is the future of agriculture, and that is controlled environment agriculture," says Hulett, who joined the CEA Alliance's board of directors in early May of this year.
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Hulett says the solution is not punitive tariffs–it's smart, forward-looking policy, and the company urges lawmakers to focus on investment incentives for domestic greenhouse expansion, immigration reform, and more.
The greenhouse revolution
Since the original trade agreement was formed in 1996, the tomato industry has seen significant developments. "The greenhouse revolution in North America has been ushered in since then in Mexico, Canada, and now more and more in the U.S.," says Hulett, adding that at the time, the Florida Tomato Exchange, which supports the termination of the agreement, probably did represent the U.S. tomato industry. "Thirty years later, they only represent part of the U.S. tomato industry. That is why we think that it would be wise from a policy standpoint to put a halt to this decision and sit down to figure out a solution that can protect the Florida growers. There is a need for the slicers–the kind of open-field tomatoes that they grow. The tomatoes that we grow both in the U.S. and in Mexico–the grapes, cherries, etc.--that's more for snacking and putting in salads. There are uses for both, so we need to make sure the entire U.S. tomato industry is represented."
Part of that suggested solution would be the significant expansion of U.S. greenhouse growing operations following incentives to do so. "Companies are investing in greenhouse-grown tomatoes in the U.S.," says Hulett. "We have also obviously invested in Mexico, and others have invested in Canada as well as the U.S. and Mexico. We believe that to provide for consumer demand for greenhouse-grown vine-ripe tomatoes, especially tomatoes like the grape and cherry tomatoes, we need all three."
He points to the company's plans to expand its facility in Arizona. "It has about four times more greenhouse space in that one facility than the entire state of Florida or even the whole southeast," Hulett says. "That is why the CEA portion of the U.S. tomato industry must also be represented because it's a growing part of the industry."
For more information:
Jennifer Halpin
NatureSweet
jennyh@naturesweet.com
https://naturesweet.com/