Texas Border Business
Texas Border Business
Governor Greg Abbott has signed bipartisan House Concurrent Resolution No. 108 (H.C.R. 108), urging the U.S. Department of Commerce to maintain the Tomato Suspension Agreement (TSA). Advocates emphasize safeguarding nearly 30,000 jobs in Texas and the overarching $7.5 billion-plus impact on the national economy, a substantial portion of which circulates through the Lone Star State.
Established in 1996 and updated in 2019, the TSA sets a reference price for fresh tomato imports from Mexico and enforces inspections to stabilize the U.S. market. It ensures a non-disruptive, year‑round supply without resorting to punitive tariffs.
However, the U.S. Department of Commerce recently announced its intent to end the 2019 version of the agreement—effective July 14, 2025—and reimpose a 20–21% antidumping duty on Mexican tomato imports. Growers in Florida, led by the Florida Tomato Exchange, applaud the move, arguing that the TSA has failed to halt “dumping” practices and disadvantaged domestic producers.
In contrast, Texas agricultural, economic, and border-community leaders paint a vastly different picture. Commissioner Ellie Torres of Hidalgo County asserts that terminating the TSA would affect hundreds of businesses and elevate tomato prices by up to 50% in regions like the Rio Grande Valley. Dante Galeazzi, CEO of the Texas International Produce Association, references data from Texas A&M showing that for every $1 of Mexican tomato imports, there’s a $2.67 return in U.S. economic activity—totaling over $8 billion annually—and supporting nearly 50,000 American jobs, including more than 30,000 in Texas.
Senator Mark Kelly and Arizona representatives echo these concerns, warning of potential job losses exceeding 50,000 across Texas and Arizona and revenue losses of over $7.5 billion for U.S. grocery retailers. The Border Trade Alliance adds that exiting the TSA would not only inflate tomato prices due to tariffs but also disrupt trade infrastructure and violate USMCA principles.
Corporate stakeholders are divided. San Antonio-based NatureSweet warns that eliminating the TSA threatens specialty tomato varieties—particularly grape tomatoes—and could reduce product variety, workforce, and operational capacity, while raising consumer prices by $1 million per week for the company alone. Conversely, Florida growers see the change as vital for leveling the agricultural playing field.
H.C.R. 108 emphasizes the TSA’s continued relevance: It underpins affordable food for families, sustains vital trade routes in South Texas ports, and protects a web of interconnected jobs, from growers, transporters, and warehouse workers to federal inspectors and retailers.
As July 14 nears, the U.S. faces a watershed moment that could reshape the domestic tomato market, impact prices, and alter global trade relations with Mexico. H.C.R. 108 urges policymakers to reconsider termination, calling instead for modernizing the agreement to balance domestic grower interests with the economic stability of Texas and the national food supply.
