The US is still involved in a trade battle that could cost the Arizona economy billions. According to Arizona businesses and lawmakers, it could also raise the price of tomatoes to consumers by as much as 50%. At least, that’s what they say will happen if the Commerce Department gives in to demands to raise tariffs and overhaul an agreement on tomatoes imported from Mexico.
The effort is the most recent in a decades-long conflict between tomato growers in the US and Mexico and the companies here that rely on Mexican imports for their livelihoods.
US growers, led by the Florida Tomato Exchange, accuse Mexico of dumping tomatoes in the US market in violation of agreements dating back to 1996. Those abuses have continued under the latest deal, the 2019 Tomato Suspension Agreement, which led the exchange to petition the Commerce Department in June to end the agreement and begin imposing anti-dumping duties on Mexican tomatoes.
The exchange said that Mexico’s share of the US tomato market has grown from 20% in 1994, when the North American Free Trade Agreement took effect, to 70% today. US growers have suffered as a result, they say. However, a study from Arizona State University claims that imposing penalties on Mexican tomatoes will only drive up prices for consumers here, while hurting the nearly 23,000 Arizonans who work in the tomato industry.
Source: cronkitenews.azpbs.org