The Canadian Produce Marketing Association (CPMA) said it is encouraged by yesterday's announcement that the United States and Mexico have come to an understanding on bilateral trade issues within the context of the North American Free Trade Agreement (NAFTA) renegotiations. Additionally, CPMA was reassured by the Mexican President‘s continued reference to including Canada in future discussions and moving towards a new trilateral trade agreement given the integration of trade between NAFTA countries.
Canadian negotiators have been steadfast in their support for the industry and are well briefed on issues affecting fresh produce, including the seasonality provision, the elimination of Chapter 19, and the sunset clause. CPMA said it is their understanding that the seasonality provision has been removed from the US-Mexico agreement and will not be part of the discussions moving forward. CPMA has long advocated for the removal of the seasonality provision and is pleased that it will not be a feature of a future trilateral agreement.
CPMA said it will continue to work with Canadian negotiators as they re-engage in formal negotiations with the U.S. reflecting the need for a trilateral agreement to preserve the competitiveness of the North American fresh fruit and vegetable supply chain.
Mike Stuart, president of the Florida Fruit & Vegetable Association, offered a contrasting perspective, urging the U.S. government not to forget Southeast growers. He issued the following statement regarding a trade agreement between the United States and Mexico:
"President Trump announced today that the United States and Mexico have reached agreement on a new trade pact that does not include a specific trade remedy for specialty crop producers in the Southeast," he said.
"This is not the outcome we have worked for. However, the president has promised to help safeguard farmers, and we will continue working diligently and persistently with the administration on solutions to stop Mexico’s unfair trading practices and to help our fruit and vegetable industry survive.
"Family fruit and vegetable farms in the Southeast that have operated for generations are desperate to see relief from cheap Mexican fruit and vegetable imports. Several companies recently announced they are shutting down operations, and more are sure to close without effective trade relief.
"For almost 20 years, Mexico’s unfair trading practices have taken their toll on producers in the Southeast. Mexico swamps the U.S. market during our narrow marketing seasons at prices far below our production costs. What’s more, Mexico’s president-elect recently promised a significant increase in government subsidies to Mexican farmers to plant a million more hectares of fruit."
Stuart concluded, "FFVA appreciates the support and efforts of our Congressional delegation on this issue. Our members of Congress understand the unfair trade environment fostered by NAFTA. Working with them and the Administration, FFVA is committed to fighting destructive trade practices through all means possible to help our farmers compete on fair terms and stay in business."
For more information:
Troy Sherman
Canadian Produce Marketing Association
Tel: +1 (613) 226-4187 x227
Lisa Lochridge
Florida Fruit & Vegetable Association
Tel: +1 (321) 214-5206