Trade wars, tariffs, anti-dumping measures – all can lead to higher prices for consumers. It also can affect loading opportunities at ports and border crossings for truckers.
USA tomato producers, particularly in Florida are pressuring the U.S. Department of Commerce to consider suspending an anti-dumpting probe under which the Mexican tomato industry has been operating since 1966.
USA and the Mexican governments have been trying renegotiate the agreement.
A primary problem here is Mexico can produce tomatoes cheaper than in the USA, plus in the situation where Florida is concerned, Mexico generally provides better tasting tomatoes. Florida grows and ships what is called a mature green tomato, even though it generally has turned red by the time it reaches your local produce department. Mexico on the other hand grows and ships a vine ripe tomato, which usually has much better taste and eating quality.
One study by a USA tomato association based in Nogales, AZ on tomato pricing study shows ending the suspension agreement and imposition of punitive or restrictive tariffs most likely will cause retail tomato prices to skyrocket. It would also mean fresh tomatoes also would not be available for the most part from December through May.
If Mexican tomatoes are forced to withdraw from the U.S. market, prices for popular varieties such as hothouse tomatoes-on-the-vine would double to nearly $5 a pound from a national average of about $2.50 a pound, and grape tomatoes would rise to nearly $5.50 a pound, according to an economic impact analysis by the Nielsen Perishables Group for the Fresh Produce Association of the Americas. Roma prices would go up more than 200 percent, according to the study.
The Florida Tomato Commitee that represents Florida tomato famers stresses retail price increases are not the issue, rather the issue is whether or not Mexican growers are violating anti-dumping laws. This means whether they are exporting their tomatoes to the USA at prices below their cost of production.
A national coalition representing 90 percent of domestic producers, and Florida growers don’t represent 90 percent of the domestic tomato industry has petitioned the Commerce Department asking for termiantion of the suppension agreement. This means other tomato production area also want the suspension since Florida does not produce 90 percent of the USA’s tomatoes.
One fact to consider is the hundreds of growers in Mexico who produce tomatoes for export to the USA would not have been able to stay in business for the last 16 years if they had been selling below their cost of production.