The expiration of the nearly 30-year-old U.S.-Mexico Tomato Suspension Agreement this week has sparked both concern and praise across the produce industry. The agreement, which previously governed pricing and inspections for Mexican tomato imports, ended after the U.S. Department of Commerce withdrew from it, reinstating a 17% tariff on most fresh tomatoes from Mexico.
U.S. Rep. Henry Cuellar warned that the termination could lead to higher consumer prices and job losses, particularly in border communities like Laredo. "Ending the agreement will lead to not only a sharp increase in tomato prices for consumers, but also job losses for businesses," Cuellar said during a press conference in San Antonio. Citing a Texas A&M AgriLife Extension Service study, he noted that Mexican tomato imports supported over 46,000 jobs in the U.S. and contributed $8.3 billion in economic output in 2024. As many as 32,000 jobs in Texas could be at risk if tariffs remain in place.
The agreement was originally formed in 1996 to settle a trade dispute after U.S. growers accused Mexican exporters of dumping tomatoes at unfairly low prices. Under the deal, Mexican producers agreed to sell at or above a minimum price and submit to quality inspections in exchange for the suspension of anti-dumping duties. The framework was periodically updated, but it had remained a foundation of the tomato trade for decades.
Now, with tariffs back in place, Cuellar has joined business leaders like U.S. Hispanic Chamber of Commerce President Ramiro Cavazos in calling for the agreement to be reinstated or replaced. He supported a Texas Legislature resolution earlier this year urging a 90-day delay in the deal's expiration.
However, not everyone is opposed to the decision. Members of the Alabama Fruit & Vegetable Growers Association (AFVGA) welcomed the move, saying it finally levels the playing field for local farmers. "The termination of this deal is long overdue and gives our family farms a real chance to thrive again," said AFVGA Executive Director Blake Thaxton.
St. Clair County farmer Chad Smith noted that the tariff has already spurred interest from buyers in local produce. "This tariff is a lifesaver to many farmers who have much higher costs and restrictions than our neighboring countries," he said. AFVGA board member Destiny Allman Gladden added, "Ending the Tomato Suspension Agreement feels like the first win we've had in years that might benefit us."
Mexico currently supplies about 70% of the U.S. tomato market.
Source 1: LMT Online
Source 2: WSFA 12
