Aug 27, 2018

UPDATED: Agreement reached between US-Mexico on trade pact

Mike Stuart, president of the Florida Fruit & Vegetable Association, issued the following statement today 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.

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.

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.”

The Georgia Fruit and Vegetable Growers Association issued the following statement today regarding an agreement on NAFTA between the United States and Mexico:

“President Trump announced today 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. This announcement is certainly disappointing. Our southeastern growers remain deeply concerned as this agreement fails to provide trade relief needed for our industry.

The president has promised to help safeguard farmers. We appreciate the administration’s efforts in the recent negotiations to help our fruit and vegetable producers even though the outcome failed. GFVGA will continue to diligently work with other industry organizations and the administration to find 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. Without effective trade relief southeastern operations will be forced to shut down.

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.

GFVGA expresses appreciation to members of Congress that understand the unfair trade environment fostered by NAFTA. These members have worked hard to support the Southeastern fruit and vegetable grower’s position on this issue. Continuing to work with our congressional members and the administration, GFVGA is committed to fighting destructive trade practices through all means possible to help our farmers compete on fair terms and stay in business.”

Western Growers’ statement

In response to the release of the U.S. Department of Agriculture’s (USDA) trade mitigation plan yesterday, Western Growers President & CEO Tom Nassif issued the following statement:

“We are still analyzing the details of this plan, but at first glance it appears USDA’s mitigation efforts will fall substantially short of making fruit, vegetable and tree nut farmers whole for the damages they have incurred, and will continue to incur, as a result of the trade war with China. Even so, our fresh produce growers never expected the mitigation plan to fully make up for lost trade revenues and market shares, which is why we submitted a series of solutions the administration could adopt to ease the burdens of its trade policies on the industry. While we are pleased with their creative approach to targeting aid to exporters, we are disappointed that many of our other ideas are not reflected in USDA’s mitigation plan.

“According to a study released by U.C. Davis economists, the direct trade losses for U.S. fruit, vegetable and tree nuts growers conservatively top $2.6 billion. When the price impacts on the domestic market are considered, the magnitude of damage exceeds $3.3 billion. These figures only represent the immediate consequences; the longer term effects will be much more catastrophic, and potentially permanent. While our fresh produce is the highest quality in the world, farmers in competing countries can and will fill the vacuum created by the trade war. Once China and other export markets find replacement suppliers, it will be extremely difficult to dislodge them.

“Time is of the essence, and only one outcome will preserve our family farms: a rapid and successful conclusion of our trade conflicts and the restoration of commerce between American farmers and buyers across the globe.”

Founded in 1926, Western Growers represents local and regional family farmers growing fresh produce in Arizona, California, Colorado and New Mexico.

CPMA ‘encouraged’ by announcement

The Canadian Produce Marketing Association (CPMA) said it is “encouraged” by the announcement. It added that it 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,” it said.

“It is our 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 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.”

Equipment manufacturers react

Association of Equipment Manufacturers (AEM) President Dennis Slater issued the following statement after the United States and Mexico announced a preliminary deal on NAFTA:

“AEM is pleased to hear that the United States and Mexico have reached a preliminary agreement to update the free trade agreement, and we urge both parties to quickly re-engage with Canada to deliver a trilateral agreement. Equipment manufacturers need a modernized North American Free Trade Agreement that will continue to protect complex, sophisticated and efficient supply chains, provide access to foreign markets, and help grow the 1.3 million jobs that our industry supports. We are optimistic that all parties will successfully resolve their remaining differences, and will assess any final agreement based on whether it promotes economic growth for equipment manufacturers.”