As tomato growers in Florida and some other states fight a 16-year-old agreement that they contend allows farmers in Mexico to export tomatoes at a price below their costs, the Mexican farmers are finding allies in the United States.
Adriana Zehbrauskas for The New York Times
The trade dispute highlights the network of interlocking interests
between the countries under the North American Free Trade Agreement.
Trade across the Mexican border is now worth more than $1 billion a day.
American producers of corn, soybeans, apples, pork and chicken have
increased sales to Mexico greatly over the years as trade barriers have
been dismantled. But at the same time, Mexico has become a fast-growing
supplier of produce to American supermarkets and restaurants. Tomatoes
lead the list: exports have doubled and their value has tripled since
the mid-1990s, to almost $2 billion.
That has been aided by a complex arrangement dating from 1996 that
established a minimum price at which Mexican tomatoes are permitted to
enter the American market.
Florida farmers are leading a campaign to persuade the Commerce
Department to scrap the accord. They won a victory in September when the
department announced a preliminary decision to end it. Lawyers in the
case say a final decision may be issued in the next few weeks.
But other United States interests are lining up in support of continuing the agreement.
For example, Richard Fimbres, a member of the Tucson City Council who is
usually more concerned with improving city streets than with the
minutiae of international trade law, recently sponsored a resolution
asking the Commerce Department to continue the agreement.
Then he wrote to President Obama last month, declaring that “we can’t turn our back on the global economy now.”
The reason is that fresh Mexican tomatoes are big business in Arizona.
Much of the $2 billion in business passes through the state, benefiting
local importers and distributors.
But the benefits go beyond them. More than 370 businesses and trade
groups — from small family-run importers on the Mexico border to
Wal-Mart Stores — have written or signed letters to the Commerce
Department in favor of continuing the deal.
Kevin Ahern, the chief executive of Ahern Agribusiness in San Diego, was
among them. His company sells about $20 million a year in tomato seeds
and transplants to Mexican farmers.
“Yes, Mexico produces their tomatoes on average at a lower cost than
Florida; that’s what we call competitive advantage,” Mr. Ahern said in
an e-mail. Without the agreement to provide “stability to a volatile
market, Mexican tomato acreage destined for U.S. markets will decline,”
he said, and that would damage his business.
While Florida tomato growers contend the accord is hurting their
business, the broader trade dynamics are generating business for other
companies in the United States.
“A lot of what is produced and harvested in Mexico is put in the ground
with U.S. money and intended for U.S. markets,” said John McClung, the
president and chief executive of the Texas International Produce
Association. “The garden simply happens to be across the river.”
NatureSweet Ltd., which is based in San Antonio, grows cherry and grape
tomatoes under 1,200 acres of greenhouses in Mexico for the American
market. It employs 5,000 people, although all but about 100 of them work
in Mexico.
“We couldn’t survive without Nafta,” said Bryant Ambelang, the company’s
chief executive. Mr. Ambelang said that Mexican-grown tomatoes were
more competitive because of lower labor costs, good weather and more
than a decade of investment in greenhouse technology.
“Here we went and signed an agreement called Nafta, and now we’re going
to go and wave our finger in one industry where Mexico has superiority?”
he said.
Mr. McClung said that even though Texas lost much of its commercial
fresh tomato industry years ago, “we can do quite nicely importing
Mexican tomatoes.”
He acknowledged that growers in Florida and elsewhere were “going slowly
under.” But, he added, “my job is to protect Texas importers.”
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