The U.S. Department of Commerce's plan to terminate the Tomato Suspension Agreement (TSA) with Mexico has sparked urgent concern among South Texas officials, produce industry leaders, and business owners, who warn the move would trigger job losses, supply chain disruption, and soaring tomato prices.
The TSA, first signed in 1996, allows Mexican tomatoes to enter the U.S. without anti-dumping tariffs in exchange for price floors and strict quality inspections. The agreement is credited with stabilizing the market and ensuring year-round tomato availability. Its termination, set to take effect July 14, would impose a 20% tariff on Mexican tomatoes.
"We anticipate a 50% price increase on tomatoes," said Hidalgo County Commissioner Ellie Torres. "This would raise the cost of meals for families and threaten 32,000 jobs in Texas. It's not just a trade issue—it's about preserving the economic future of South Texas."
Nearly half of all Mexican tomatoes entering the U.S. pass through South Texas ports of entry, including Pharr, McAllen, Roma, and Laredo. The tomato industry generates over $4 billion annually for the state and supports jobs in growing, logistics, retail, and foodservice.
Dante Galeazzi, CEO of the Texas International Produce Association, emphasized that the U.S. cannot meet national demand without Mexico. "We don't have the year-round climate, labor, or infrastructure," he said. According to a Texas A&M study, every $1 of Mexican tomatoes imported creates $2.67 in economic return, totaling over $8 billion nationwide.
Local businesses are also bracing for impact. Victor Romero of Relvic Trucking warned of route disruptions, while Oscar Castillo, a restaurant co-owner in Pharr, said higher prices will squeeze profit margins and force staff cutbacks. "We can't increase menu prices every week," he said.
In Roma, City Manager Alejandro Barrera noted that nearly 60% of produce crossing the local bridge is tomatoes. The city's new industrial park, focused on cold storage and logistics, was developed based on continued international produce trade. "If this agreement ends, it puts thousands of shipments and jobs at risk," Barrera said.
Officials are urging public support for House Concurrent Resolution 108, which calls on the Department of Commerce to preserve the agreement. Galeazzi, Torres, and Barrera continue discussions with federal leaders and encourage citizens to contact lawmakers to protect this vital trade framework.
Source 1: myRGV
Source 2: ValleyCentral
Source 3: Texas Border Business