Mexico Trade with United States: Nafta and Tomatoes
I read a very interesting article in The New York Times on December 28 and would like
to discuss it here with you. I do hope you will share your thoughts with our readers!
Tomatoes really lead the list of produce imported into the U.S. from Mexico.
Exports have doubled and their value has tripled since the mid-1990’s- to almost
$2 billion.
This influx of tomatoes has been aided by an arrangement that was made in 1996
which established the minimum price at which Mexican tomatoes are permitted to
enter the American market.
Much of the $2 billion in business passes through the state of Arizona, benefiting
local importers and distributors.
Florida tomato growers claim that the 1996 accord is hurting their business.
“A lot of what is produced and harvested in Mexicco is put in the ground
with U.S. money and is intended for U.S.markets”, said John McClung, the president
and chief executive of the Texas International Produce Association.
“the garden simply happens to be across the river”
Nature Sweet Ltd. based in San Antonio, grows tomatoes under 1,200 acres
of greenhouses in Mexico for the American market. It employs 5,000 people,the majority
of whom live in Mexico.
“We couldn’t survive without Nafta”, said Bryant Ambelang, the company’s chief executive.
Mr. Amblelang said that the Mexican grown tomatoes were more competitive in price
because of lower labor costs, good weather, and more than a decade of investment in greehouse technology.
“Here we went and signed an agreement called Nafta, and now we are going to wave our finger in one industry where Mexico has superiority?” he said.
Mr. Abelang did acknowledge that tomato growers in Florida were “slowly going under”
but he added, “my job is to protect the Texas importers.”
Reginald L. Brown,the president of the Florida Tomato Exchange, said that the influx
of Mexican tomatoes pushed pries so low last winter, that the industry was not able
to cover picking and packing costs.
Mr. Brown feels that the U.S. tomato industry has the right to protect itself.
What is your opinion dear readers? Where does this leave global trade?
