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Eugene

(61,903 posts)
Thu Feb 7, 2019, 06:25 PM Feb 2019

U.S. to end tomato trade pact with Mexico, threatening duties

Source: Reuters

WASHINGTON (Reuters) - The United States will resume an anti-dumping investigation into Mexican tomatoes, the Commerce Department said on Thursday, withdrawing from a 2013 managed trade deal that U.S. growers and lawmakers say has failed.

The move opens a new source of trade friction between the United States and Mexico, Commerce said it was giving the required 90-day notice before terminating the six-year-old agreement not to pursue anti-dumping cases against fresh tomato imports from Mexico.

The action could lead to new duties on Mexican tomatoes, higher consumer prices and possible retaliation at a time when the two countries are still wrangling over U.S. tariffs on Mexican steel and aluminum.

A trade war over tomatoes was averted twice since the 1990s, most recently in 2013 with the current deal to put a price floor on Mexican tomatoes sold in the United States while barring U.S. growers from pursuing anti-dumping charges against Mexican exporters.

-snip-

BUSINESS NEWS FEBRUARY 7, 2019 / 12:56 PM / UPDATED AN HOUR AGO
David Shepardson, David Lawder
4 MIN READ


Read more: https://www.reuters.com/article/us-usa-tomatoes-mexico/u-s-to-end-tomato-trade-pact-with-mexico-threatening-duties-idUSKCN1PW27Y

24 replies = new reply since forum marked as read
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U.S. to end tomato trade pact with Mexico, threatening duties (Original Post) Eugene Feb 2019 OP
I don't understand this hostility here. Tomatoes do require a warm environment to grow in, ... SWBTATTReg Feb 2019 #1
Texas and Arizona, big, huge tomato farms 2naSalit Feb 2019 #3
Thanks! I kind of suspected but wasn't sure. Makes sense! I agree w/ you, Hawaii is a stretch... SWBTATTReg Feb 2019 #8
I used to, in a nother life 2naSalit Feb 2019 #9
I bet you have some stories about this kind of life...I've seen some on TV about pickers etc., SWBTATTReg Feb 2019 #10
Oh I wasn't harvesting 2naSalit Feb 2019 #11
I know of a couple of friends of mine that are on the road, I don't see them very ... SWBTATTReg Feb 2019 #12
No problem. 2naSalit Feb 2019 #13
the best tasting sweetapogee Feb 2019 #15
but but lillypaddle Feb 2019 #2
The ones I buy when I'm not growing them 2naSalit Feb 2019 #4
I love those too! Last ones I bought came from CANADA!! NurseJackie Feb 2019 #5
Could raise cost of our winter-time groceries and... KY_EnviroGuy Feb 2019 #6
Argh. Here's the agreement from 2013. Igel Feb 2019 #7
We do about $1 BILLION in cross-border business EVERY DAY. Hortensis Feb 2019 #14
Consumer prices will go up. dalton99a Feb 2019 #18
:) A LOT of tomatoes on that tomato-red graph. Hortensis Feb 2019 #19
Wow! dalton99a Feb 2019 #21
Last year a lot of Florida growers let their fields rot bluecollar2 Feb 2019 #16
"And a growing lack of access to labor" TexasBushwhacker Feb 2019 #17
Georgia's suffered a lot from cutting off its labor Hortensis Feb 2019 #20
I'm a grower also bluecollar2 Feb 2019 #22
I'm glad to hear that wages and working conditions are improving TexasBushwhacker Feb 2019 #23
I hope so too. bluecollar2 Feb 2019 #24

SWBTATTReg

(22,143 posts)
1. I don't understand this hostility here. Tomatoes do require a warm environment to grow in, ...
Thu Feb 7, 2019, 06:42 PM
Feb 2019

and where else are we going to get them? We do have Calif., Florida, and Hawaii that are warm enough to grow tomatoes, and growing them in Mexico makes sense too. Maybe in AR and other states in the southern US grow tomatoes too.

Perhaps the consumers should be the deciding factor in determining if the tomatoes are priced too low, and that the growers in the US need to step up their game in growing them (the tomatoes). This sounds like an attempt by growers here in the US to solely sell their tomatoes (and no one else would be allowed to), and of course the American consumer would be the one who pays the bill. Again, the producers seem to have the upper hand in this country and not the consumer.

Am I missing something here? Is there truly a case of dumping? I would think being so highly perishable, that one must be careful about taking too long to ship, to handle, etc.

2naSalit

(86,650 posts)
3. Texas and Arizona, big, huge tomato farms
Thu Feb 7, 2019, 07:48 PM
Feb 2019

along with lettuce and carrots an other veggies. The water access is the thing where most produce is grown on mega farms. Hawaii is pretty far for tomatoes to travel.

SWBTATTReg

(22,143 posts)
8. Thanks! I kind of suspected but wasn't sure. Makes sense! I agree w/ you, Hawaii is a stretch...
Thu Feb 7, 2019, 11:37 PM
Feb 2019

take care!

SWBTATTReg

(22,143 posts)
10. I bet you have some stories about this kind of life...I've seen some on TV about pickers etc.,
Thu Feb 7, 2019, 11:43 PM
Feb 2019

following the crops as they got ripe and my great grand mother, 30 years deceased, used to tell us of stories where they would all pack up and go pick peaches in Colorado of all places. Take care of yourself!

2naSalit

(86,650 posts)
11. Oh I wasn't harvesting
Thu Feb 7, 2019, 11:57 PM
Feb 2019

I was hauling the stuff in semis to markets all over the country... professionally I have logged over 2 million miles.

SWBTATTReg

(22,143 posts)
12. I know of a couple of friends of mine that are on the road, I don't see them very ...
Fri Feb 8, 2019, 12:17 PM
Feb 2019

often. Seems like they all have their favorite place when they are all on the road...take care and thanks for clarifying.

2naSalit

(86,650 posts)
13. No problem.
Fri Feb 8, 2019, 12:22 PM
Feb 2019

One can only relate to this of which they know. Driving used to be a lot of fun, even though the work was hard. It was fun up until about 1990-ish, and way lots of fun back before 1980. I retired from that in '92.

NurseJackie

(42,862 posts)
5. I love those too! Last ones I bought came from CANADA!!
Thu Feb 7, 2019, 08:04 PM
Feb 2019
What about my Campari tomatoes????
I love those too! Last ones I bought came from CANADA!! Who knew?

KY_EnviroGuy

(14,492 posts)
6. Could raise cost of our winter-time groceries and...
Thu Feb 7, 2019, 08:57 PM
Feb 2019

any remaining inexpensive meals from restaurants (I expect to see many restaurants to close due to higher labor and lease costs, regardless).

I see no mention of whether American growers can even meet current demand if imports become too expensive.

Drip, drip, drip goes the Trump inflation machine......

Not an advocate of always buying lowest-price products at any cost to society, but the day is coming when we will need to preserve our remaining water supplies just for hydration and sanitation. The Colorado River supply system is dying as we speak, and Florida's day is coming.

Igel

(35,320 posts)
7. Argh. Here's the agreement from 2013.
Thu Feb 7, 2019, 11:00 PM
Feb 2019

It has the squirrelly name Suspension Agreement.

Sort of a useful quasi-organized approach:
https://enforcement.trade.gov/tomato/2013-agreement/2013-agreement.html

Full text:
https://enforcement.trade.gov/tomato/2013-agreement/documents/Mexico-Tomatoes-Agreement-20130304.pdf

Text page 19ff give prices. It's worth noting that the prices cross-cut several ways. There's a "summer" price and a "winter" price, and there are tiered prices for non-specialty and specialty (including "heirloom&quot . It doesn't cover (I think--I quickly skimmed it) tomatoes intended for processing.

Tomato producers in the US have been up in arms over the pricing, since as prices increase the floor for Mexican imports has held constant. If Mexico undercuts that, even, it's a huge market advantage.

Hortensis

(58,785 posts)
14. We do about $1 BILLION in cross-border business EVERY DAY.
Fri Feb 8, 2019, 12:37 PM
Feb 2019

This is could push the price of tomatoes up noticeably, and that'd irritate a lot of conservatives and nonvoters in general who carefully avoid knowing anything about the cross-border children they've been kidnapping and keeping from their parents, traumatizing, otherwise neglecting and actively abusing and "losing."

Let's just hope some realize why the hurt. I especially appreciated a line in a SNL skit that dissed female contestants on a TV show as all looking "like women who don't vote."

GOTV SNL style.

Hortensis

(58,785 posts)
19. :) A LOT of tomatoes on that tomato-red graph.
Sat Feb 9, 2019, 01:24 PM
Feb 2019

I was intrigued by those autumn Pharr spikes. Pharr, down near the most southern point of the TX-MX border, turns out to handle the largest volume of fresh produce all year. Maybe that's what Roma tomatoes look like on a graph, or maybe folk in the southwest are still harvesting their last and a lot of that is headed to colder climes?

In any case, for some reason since 1996 northbound trucks through Reynosa, MX haven't been allowed to use the Hidalgo port, so here they are. Only 4 lanes.



Now THIS is the kind I'm used to. Still have a flower pot shaped like a chicken we purchased the last time we waited in those lines.

bluecollar2

(3,622 posts)
16. Last year a lot of Florida growers let their fields rot
Sat Feb 9, 2019, 06:29 AM
Feb 2019

I live in the Redland...an area south of Miami around Homestead. It's a huge tomato , squash and beans. Produce/row crops are a big business down here.

Tomatos are on the vine here right now. They'll be picked green and sent to the warehouses to be shipped.

Last year the big growers put down herbicides and killed off the crops rather than harvest them. Their claim was they couldn't afford to harvest them due to Mexican imports and a growing lack of access to labor.

Let's see what happens this year.

TexasBushwhacker

(20,204 posts)
17. "And a growing lack of access to labor"
Sat Feb 9, 2019, 12:42 PM
Feb 2019

Last edited Sat Feb 9, 2019, 01:48 PM - Edit history (1)

Our food system is a mess, isn't it? There are still so many crops, like tomatoes, that have to be harvested by hand, which means SEASONAL labor. And American citizens want full time, permanent jobs. I get that. That's what I want too. Yet we demonize the migrant workers who come from Mexico to do the back breaking, low paying, seasonal work that citizens, for the most part, WILL NOT DO.

Hortensis

(58,785 posts)
20. Georgia's suffered a lot from cutting off its labor
Sat Feb 9, 2019, 01:47 PM
Feb 2019

out of spite. Started well before Trump, though, with as tea-party social conservatives gained power.

I bet anything the Trump admin imagined Americans would/could be pushed to tear their hands apart shelling Maryland seafood for minimum wage when they blocked the needed visa allotments. Sure, because what upstanding Americans wouldn't be glad to grow up knowing hard, seasonal, minimum wage jobs were being saved for them?

bluecollar2

(3,622 posts)
22. I'm a grower also
Sat Feb 9, 2019, 03:17 PM
Feb 2019

But I don't have row crops.

I grow lychees, logans, mangos and avocados so my business is much less labor intensive. Also my fruit are picked during late summer.

My buyer picks his own with his own crews. The row crop growers have the highest need for labor.

The positive thing coming out of the labor shortage is that the hourly wages and working conditions are improving for those doing the work.

I have a couple of large (20-30 acre) tomato fields nearby ready to pick pretty soon. Going to be interesting to see whether Di Mari harvests this year...

TexasBushwhacker

(20,204 posts)
23. I'm glad to hear that wages and working conditions are improving
Sat Feb 9, 2019, 04:10 PM
Feb 2019

I hope that's the case on a broad scale. Frankly, if our food is cheap because of "illegal" immigrant labor, then it's TOO CHEAP. I don't want to pay $5/lb for tomatoes any more than the next person, but I don't like the idea of living large while others suffer. I can buy whole chickens on sale for 99 cents a pound. That's RIDICULOUS. Meanwhile, workers in chicken processing plants are wearing diapers because they aren't getting enough bathroom breaks.

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