Ag Groups, NRF, RILA, Border Trade Alliance Tell USTR Tariffs Not Justified on Mexican Produce

Florida lawmakers who have asked U.S. Trade Representative Katherine Tai to start a Section 301 investigation on unfair support for Mexican produce exports are forum shopping after "prior U.S. government investigations have found that Mexican imports have not injured that segment of the U.S. industry," wrote 24 trade groups, mostly agriculture exporters, but also the National Retail Federation and Retail Industry Leaders Association.

The letter, sent Oct. 5, refers to the blueberry safeguard investigation at the International Trade Commission (see 2102110060); there has been no petition to investigate strawberries, bell peppers, squash or other seasonal produce from Mexico, the import subjects of the Florida congressional delegation's complaint, but the ITC has monitoring programs.

Nearly the full Florida delegation asked for Tai to use Section 301 "to investigate Mexico’s trade-distorting practices and policies and provide urgently needed relief to Florida’s growers," after noting that trade remedies are not available for producers of seasonal products (see 2209090052). A petition could be brought for safeguards if a majority of growers supported it, but southeastern growers and growers in California, Arizona and other states don't agree that such an action is needed.

"A Section 301 investigation would undermine our relationship with one of our largest agricultural trading partners and create a substantial risk of retaliatory actions, jeopardizing this critical market for U.S. agricultural exports," the agricultural groups told Tai. They noted the U.S. exported more than $25 billion in ag goods to Mexico in 2021, and Mexico is the second-largest destination for ag exports.

"While the petition asks only for 'relief,' it is clear in context that the relief the petition seeks is tariffs on imports of produce from Mexico," the groups said.

They don't believe that there is any need for tariffs on Mexican fruits and vegetables, but if there were distorting actions to support Mexican produce growers, they argue, "trade agreement dispute resolution is the proper avenue, one that would not trigger Mexican retaliation."

"We urge USTR to reject this Section 301 petition and work instead to open new markets for U.S. agricultural exports in the Indo-Pacific, Taiwan, and elsewhere," they said.