Onion farmers push for $3 to $5 import fee amid cost pressures

Key takeaways:

• U.S. onion producers are seeking a $3 to $5 per bag fee on imported Mexican onions to address cost disparities.
• Lawmakers have backed the request in a letter to USDA and U.S. trade officials.
• The proposal also calls for enforcement of Mexico’s water delivery obligations under a long-standing treaty.

The National Onion Association (NOA) is asking U.S. trade officials to impose a $3 to $5 per bag fee on imported Mexican onions and enforce water delivery commitments under existing agreements, with support from several members of Congress.

Onion growers costs

The request comes as U.S. onion producers report rising production costs and increased imports from Mexico.

According to the association, domestic production costs have increased more than 340% since 1992, while U.S. growers continue to meet labor, food safety and environmental standards. Average U.S. agricultural wages range from $16.50 to $17 per hour, compared to about $1.80 per hour in Mexico.

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The proposed fee is modeled in part on a pre-NAFTA duty of 87.5 cents per bag. The association said adjusting that figure for inflation and higher compliance costs supports a higher rate today.

Support for the proposal includes Rep. Gabe Evans, R-Colo., and Sen. Kevin Cramer, R-N.D., along with eight additional representatives and one senator who signed a letter to Ag Secretary Brooke Rollins and U.S. Trade Representative Jamieson Greer.

“Our growers operate under some of the highest labor, food safety and environmental standards in the world,” said Greg Yielding, executive VP and CEO of NOA. “A modernized import duty … is essential to restoring fairness.”

Mexico water treaty

The association also raised concerns about Mexico’s water delivery obligations under the 1944 U.S.-Mexico Water Treaty, stating that more than 1 million acre-feet of water remains owed to the United States. It is asking that enforcement mechanisms be included in ongoing negotiations tied to the U.S.-Mexico-Canada Agreement.

The U.S. onion industry has an estimated $7 billion market value.

FAQ:

Q: What fee are onion producers requesting?
A: A $3 to $5 per bag fee on imported Mexican onions.

Q: Why are growers requesting this fee?
A: They cite rising production costs and differences in labor and regulatory standards.

Q: Who supports the proposal?
A: Several members of Congress, including Rep. Gabe Evans and Sen. Kevin Cramer.

Q: What water issue is involved?
A: Mexico is reported to owe more than 1 million acre-feet of water under a 1944 treaty.

Q: How large is the U.S. onion industry?
A: It is valued at about $7 billion.