Keeping tabs on fresh tomato imports from Mexico

Added on 04 September 2020

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Keeping tabs on fresh tomato imports from Mexico

The U.S.-Mexico-Canada Agreement may have eliminated trade barriers for several agricultural exports, but trade in tomatoes between the U.S. and Mexico remains complicated. Now, growers are making a push for the Trump administration to protect domestic tomato production against imports of increasingly competitive Mexican produce.

Mexico is the largest exporter in the world and the U.S.'s top international supplier. Of the $2.4 billion worth of tomatoes the U.S. imported in 2019, $2.1 billion came from Mexico, representing 87.5% of total U.S. tomato imports.

The Mexican tomato industry has significantly ramped up production not just thanks to lower labor costs, but also extensive support from the Mexican government in the form of capital for producers, investment in infrastructure and technology to modernize the industry, and other subsidies throughout the supply chain.

Most of Mexico's tomato production is for the fresh market, so this is an issue U.S.-based greenhouse tomato growers should be monitoring. Continue reading here.