Mexican Produce Importers Hit Back at 301 Investigation Request

A trade group that represents firms that import Mexican produce fired back at a Florida delegation that had asked the U.S. trade representative to initiate an investigation against Mexican growers under Section 301 (see 2209090052).

“Florida and U.S. companies importing from Mexico have competed for generations during the winter and spring months, and that is not going to change. You can count on that,” said Lance Jungmeyer, president of the Fresh Produce Association of the Americas. “You can also count on the fact that every election cycle, Florida politicians will dredge up the same tired complaints, which ignore the market dynamics.”

The petition, sent Sept. 8, follows unsuccessful attempts to get new provisions in USMCA to allow Southeast growers to erect barriers to imports, and an unsuccessful attempt to win safeguard tariffs on blueberries (see 2102110060).

"Senators Marco Rubio and Rick Scott of Florida continue their repeated attempts to foment political discord, undermine the U.S. Mexico Canada Agreement, and negatively impact consumers," the FPAA news release said about the two Republicans. "American consumers are already struggling with inflationary pressures, and the trade actions sought by the Florida Congressmen will further exacerbate them if tariffs are imposed to increase the cost and reduce the availability of fresh produce."

The International Trade Commission investigated Mexican imports of cucumbers and summer squash, and said the agency's economic modeling suggests that an increase in Mexican imports of those vegetables resulted in lower prices in the market. Florida and Mexican produce sell at similar prices, the ITC said.

The ITC has been monitoring imports of strawberries and bell peppers from Florida since a December 2020 request from the former USTR.

"The Florida Senators also rehash the same debunked myth of outrageous Mexican subsidies. Both Mexico and the U.S. are allowed to subsidize agricultural production under WTO, and Senators Marco Rubio and Rick Scott fail to mention that Mexico only spends approximately 2% of the amount allowed compared to 41% of the U.S. in the same period," the release said.