A petition by a small group of U.S. tomato producers to end the long-standing Tomato Suspension Agreement with Mexico could lead to substantial price hikes for consumers, according to a study by Arizona State University. The agreement, which has been in effect since 1996, ensures fair trade practices and market stability for fresh tomato imports. Without it, companies like NatureSweet, a prominent snacking tomato brand, and others could face over 20% tariffs on Mexican tomato imports.
The study predicts that consumers might pay an average of 50% more for fresh tomatoes, and grocery retailers could see a revenue reduction of nearly $7.5 billion. Texas and Arizona are estimated to lose billions in economic activity, and over 54,000 jobs supported by Mexican tomato imports could be at risk. The petitioners argue that the 2019 Suspension Agreement is crucial for maintaining fair trade and preserving jobs and businesses on both sides of the border.