U.S. Chamber calls on government to reverse Tomato Agreement withdrawal

U.S. industry organizations have urged the Department of Commerce to reconsider its plan to withdraw from the 2019 Mexican Tomato Suspension Agreement (TSA), which is due today (July 14).

The organizations argue that terminating the agreement could disrupt the U.S. tomato supply chain and negatively impact the broader economy.

In a letter addressed to Secretary of Commerce Howard Lutnick, the groups emphasized that tomatoes are the second most consumed vegetable in the U.S., with over 2 million metric tons imported annually from Mexico. This is about 90% of the commercial tomato supply.

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The letter stated that ending the agreement could have significant repercussions across multiple sectors, including agriculture, logistics, retail, and foodservice. The organizations estimated that the import and sale of Mexican tomatoes contribute approximately $8.3 billion to the U.S. economy and support nearly 50,000 jobs.

They also highlighted that for nearly 30 years, the suspension agreements have provided stability and that they are regularly updated to reflect market conditions. The letter warns that withdrawal at this time, amid ongoing trade uncertainties, might provoke retaliatory actions from trade partners, further complicating U.S. trade and supply chains.

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Full letter below:

This letter was sent to the U.S. Department of Commerce regarding the U.S. Department of Commerce’s intent to withdraw from the 2019 Agreement Suspending the Antidumping Investigation on Fresh Tomatoes from Mexico (the “Agreement”).

The Honorable Howard Lutnick
Secretary of Commerce
U.S. Department of Commerce
1401 Constitution Avenue NW
Washington, DC 20230

Dear Mr. Secretary:

The undersigned organizations write regarding the U.S. Department of Commerce’s intent to withdraw from the 2019 Agreement Suspending the Antidumping Investigation on Fresh Tomatoes from Mexico (the “Agreement”). This decision could create challenges for the U.S. economy, and we therefore urge you to pause this decision to allow time to negotiate a new agreement.

Tomatoes are a vital staple in the American diet. According to the U.S. Department of Agriculture, tomatoes are the second most consumed vegetable in the United States. While the U.S. produces a significant amount on its own, U.S. growers and distributors must import over 2 million metric tons annually —about 90% of which comes from Mexico—to meet domestic demand. Mexico is a key producer of specialty tomatoes like Roma and vine-ripened varieties, which can be difficult to produce domestically in commercial quantities.

Terminating the Agreement would likely have widespread repercussions on the U.S. economy, affecting agriculture, warehousing, logistics, grocery, and restaurant industries. Nationwide, the import and sale of Mexican tomatoes generate an estimated $8.3 billion in economic benefits, including $4.69 billion in indirect and induced effects. U.S.-owned companies employ nearly 50,000 workers in jobs directly and indirectly supporting the movement of tomatoes from Mexico into communities across the country.

For nearly 30 years, the suspension agreements have provided stability and certainty for growers and consumers on both sides of the border. These agreements are regularly updated to account for changing market conditions and to protect the interests of U.S. producers, businesses, and consumers — and there is no reason Commerce cannot update the Agreement rather than terminate it. But 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.  

Thank you for your consideration of our request.

Sincerely,

Agricultural and Food Transporters Conference

American Association of Port Authorities

Arizona-Mexico Commission

Border Trade Alliance

Cedar Park Chamber of Commerce

Corn Refiners Association

Del Rio Chamber of Commerce

Fresh Produce Association of the Americas

Graham County Chamber of Commerce

Greater Beaumont Chamber of Commerce

Greater Phoenix Chamber

Lake Travis Chamber of Commerce

Laredo Chamber of Commerce

Meat Institute

National Council of Chain Restaurants

National Pork Producers

National Restaurant Association

National Retail Federation

Nogales Santa Cruz County Chamber of Commerce

Northern Brazoria County Chamber of Commerce

Retail Industry Leaders Association

San Diego Regional Chamber of Commerce

Sky Islands Regional Partnership

Southern Arizona Hispanic Chamber of Commerce

Texas Association of Business

Texas International Produce Association

The Chamber of Southern Arizona

Trinity Valley Chamber of Commerce

U.S. Chamber of Commerce

Washington County Chamber of Commerce

Yuma County Chamber of Commerce