By Clint Thompson
The Georgia Fruit and Vegetable Growers Association (GFVGA) submitted a letter to the Office of the U.S. Trade Representative (USTR) amid the USMCA review. It highlighted the continued surge of imported fruits and vegetables into the U.S.
“We encourage you to consider any trade policies that will protect U.S. fruit and vegetable growers from unfair foreign competitors, such as quotas and other tools, as the tariffs alone will not solve the economic decline of our industry,” Chris Butts, executive director of the GFVGA, noted in the letter.
“We greatly appreciate the opportunity to provide comments to assist in the upcoming USMCA review and encourage you to explore all possible options to provide an effective, near-term relief against unfairly traded Mexican fruits and vegetables threatening the survival of Georgia farm production in our nation.”
Commodities Impacted
He said that the commodities that imports impact the most include asparagus, bell peppers, blueberries, cucumbers and squash. Since the crops are highly perishable, marketed fresh and usually sold within a short time period after harvest, they are not suited for export and require the domestic markets.
“The continued influx of low-cost imported produce during U.S. harvest seasons places downward pressure on farmgate prices and undermines the economic stability of local producers,” the letter read.
Imports of fresh fruits and vegetables from Mexico have increased by more than 550% since 2001. Since agricultural wage rates in Mexico are about one-tenth of U.S. rates, domestic workers can not compete. Labor expenses constitute about one-half of production and harvest costs for fruit and vegetable operations.
“For example, harvesting one acre of strawberries in the U.S. can require approximately 1,000 labor hours, translating to an estimated cost of $14,680, compared to roughly $1,750 for equivalent work in Mexico,” the letter added. “U.S. producers face higher costs associated with U.S. environmental, food safety and labor standards, which further limit their ability to compete with imported products. Without a leveling of the playing field, fruit and vegetable production will continue to shift to foreign countries.”
USMCA Background
The USMCA, which includes the U.S., Mexico and Canada, entered into force on July 1, 2020. The USMCA requires the Free Trade Commission, which is comprised of governmental representatives from all three countries) to meet on the sixth anniversary of entry into force (July 1, 2026), to conduct a joint review of the agreement. They can evaluate any recommendations for submitted actions and decide on any appropriate responses.
Each governmental party must confirm if it wishes to extend the term of the agreement. Also, if a participating party wishes to make a recommendation for the Commission to take action, it must do so at least one month before the joint review meeting occurs (by June 1, 2026).