Arizona lawmakers: Trade decision could result in 50K jobs lost

(The Center Square) – Five Arizona congressional members and their colleagues have sent a letter to the Trump administration asking it to reconsider its decision to leave the 2019 Tomato Suspension Agreement.

The TSA is an agreement between the United States and Mexico regarding the regulation of imported Mexican tomatoes.

In their letter last week to Secretary of Commerce Howard Lutnick, the congressional members said terminating this agreement would cause Americans to lose jobs, increase consumer prices and hurt the country’s agricultural supply chain.

Specifically, they are concerned about how this decision will impact state economies like Arizona, Texas, Utah and California.

The congressional members stated that the termination of this agreement could result in more than 50,000 job losses in Arizona and Texas alone.

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They said international trade is “critical” for the country’s food supply and ability to meet Americans’ expectations for “affordable, healthy, and quality fresh produce year-round.”

They added that numerous sectors have become dependent on year-round access to tomatoes and other non-American crops.

The letter cited a Texas A&M University study that shows Mexican tomato imports contribute more than $8 billion yearly to America’s economy.

Furthermore, the congressional members referenced a University of Arizona study that said Mexican tomato imports contribute almost $3.5 billion to the country’s GDP.

This agreement between the two countries began in 1996 to help inspect tomatoes coming from Mexico. That year, America started an antidumping investigation against Mexico to determine whether its imported tomatoes were sold at a lower than fair value.

After launching the investigation, America suspended it, and both countries agreed to the TSA. Both countries have adjusted it, with the latest iteration coming in 2019.

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However, the Department of Commerce announced last month that it was leaving this deal because the current agreement did not properly protect “U.S. tomato growers from unfairly priced Mexican imports.” According to the agency’s press release, it received many comments saying that America should withdraw from the agreement.

The DOC said this move will let “U.S. tomato growers to compete fairly in the marketplace.”

As a result of withdrawing from the agreement, the United States will impose a 20.91% tariff on imported Mexican tomatoes starting July 14.

Regarding inspection, the elected officials said that since the TSA went into effect, America has heavily regulated Mexican tomatoes. They stated that since 2020, Mexican tomatoes at ports of entry have passed inspection at a 99% success rate.

“These metrics demonstrate how Mexican growers, their selling agents, and customers in the U.S. overwhelmingly comply with every facet of the agreement,” they wrote.

Moreover, the congressional members said they recognized the importance of American trade law and antidumping orders. Despite this, they said the one-size-fits-all approach risks undermining a domestic tomato industry that has benefited from “over two decades of protection via minimum floor prices under successive suspension agreements.”

Addressing the DOC’s complaints about TSA, the congressional members asked for more information about them.

In addition, the members said the current “tact” will jeopardize cross-border commerce and harm Mexico’s economy.

“Terminating the TSA now would be profoundly disruptive and run counter to the administration’s goals,” they said.

U.S. Sens. Mark Kelly and Ruben Gallego, both D-Arizona, with U.S. Reps. David Schweikert, R-Scottsdale; Greg Stanton, R-Prescott; and Yassamin Ansari, D-Phoenix, signed the letter with 11 other congressional members.

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