The end of a Tomato Suspension Agreement may mean a 17 percent duty on Mexican tomatoes as of May 8 and higher consumer prices overnight.
A woman selects tomatoes at a market stall in Mexico City, Mexico February 22, 2019. Picture taken February 22, 2019. REUTERS/Daniel Becerril By Laura Reiley Laura Reiley Reporter covering the business of food Email Bio Follow March 21 at 7:00 AM Florida tomato growers have no shortage of challenges these days. Development is encroaching on the best farmland.
“The Mexicans would like to make this into a taste test, or who has the better natural environment for growing tomatoes. Those are applicable for a broader debate, but a dumping case is very specific,” says Michael Schadler, executive vice president of the Florida Tomato Exchange. “You can go into the marketplace and see prices that are at dumping value. ”
Mexican growers say that their Florida counterparts are using this moment of anti-Mexican, anti-NAFTA sentiment to snatch back market share. This is partially why California, which also grows lots of tomatoes, has not entered the fray. California’s season for fresh tomatoes is during the summer and, perhaps more importantly, California’s focus is on canning. The state produces 95 percent of the country’s canned tomatoes — with lots exported to Mexico.
“The NAFTA deal has winners and losers,” Rominger said. “We sell a lot of corn to Mexico. But there are going to be losers, and people in high-labor businesses have a tougher time competing with Mexico. ”
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