Letter to the Hon. Lisa R. Barton, U.S. International Trade Commission Secretary - Hastings Leads Florida Democrats in Seeking Relief for Produce Farmers

Letter

Dear Secretary Barton:

We write on behalf of the agriculture communities we represent in the State of Florida to offer our support for Investigations No. 332-581 and No. 332-582, Monitoring of Fresh or Chilled Strawberries and Bell Peppers, respectively, initiated by the International Trade Commission (ITC) and its federal agency partners. We anticipate these meaningful efforts will help address concerns of unfair trade practices employed by Mexico that have a substantial negative impact on U.S. seasonal and perishable fruit and vegetable producers. Florida's agriculture industry is an essential supplier of domestic goods, and the trading practices employed are a substantial cause of serious injury to Florida's industry, putting their livelihoods and a crucial part of our national food supply chain at risk for failure by no fault of their own.

The Office of the U.S. Trade Representative (USTR) and the U.S. Departments of Agriculture and Commerce published an interagency report on September 1, 2020 outlining a devastating reality of the duress experienced by domestic produce farmers due to injurious trade practices. In recognition of the extraordinary growth of importation of Mexico's fresh fruits and vegetables into the U.S., the report noted that "[i]n 1993, the United States imported approximately $1.2 billion of fresh fruits and vegetables from Mexico. By 2019, imports had increased 1,025 percent to $13.5 billion." Additionally, the USTR released a plan to support American producers of seasonal fruits and vegetables that included opening an investigation with the ITC to monitor and examine strawberry and bell pepper imports that could aid in an expedited 201 global safeguard investigation under Section 202(b) of the Trade Act of 1974.

While the ITC restricts the period of examination to 2016-2020, it is crucial to note that Florida's growers have long been working to compete with imports that are unlawfully subsidized by the Mexican government. In fact, there was a 551 percent influx of Mexican produce imported between 2000-2019, bolstered by government programs that drive prices down below domestic producers' break even cost and caused an immense loss of sales between $1.1 and $2.2 billion. Florida's market share loss for strawberries accelerated between 2016-2020, as the total annual volume of imported strawberries from Mexico increased by 47 percent. This equates to 258 jobs no longer supported, $1.6 million in decreased indirect tax revenue, and $31.7 million in overall negative economic impact. Likewise, Florida's bell pepper market share also declined an astounding 57.5 percent during the period, resulting in 700 lost jobs, $4.3 million in reduced indirect tax revenue, and $86.1 million in overall negative economic impact. Of course, these losses ripple out to surrounding communities, costing tens of thousands of jobs, as well as a total loss of $1.89 to $3.78 billion for our state's economy. This season, Florida's family farms in particular face dire conditions as they continue to incur costs that cannot be met if they are forced to match the prices of the produce imported from competitors in Mexico.

These patterns, a substantial cause of serious injury, are clear across seasonal and perishable commodities, especially against the backdrop of Florida's long-held position as the nation's provider of strawberries in the winter, and a top bell pepper producer. Mexico's stunning takeover of our nation's market share for both of these commodities is clear; over almost two decades import of Mexico's berries grew by over 1600 percent and almost $800 million, and today Mexican imports make up 73 percent of the U.S. bell pepper market. This growth has not been based on fair markets or true competition, and drastically impacted Florida's farmers, economy, and U.S. consumer access to domestically-grown fresh berries and peppers. It is incumbent on us as their representatives in foreign trade negotiations that we not only work to protect a fair international market, but also protect our nation's food supply chain. Our current health and economic crises require us to recognize and redress the harm experienced by U.S. farmers to prevent a failure to deliver basic produce in future crises and the loss of generations of work growing Florida's agriculture sector.

We cannot afford to lose an industry so inherently connected to the stability and growth of not just Florida and its communities, but also to our nation's reliable food supply. The ITC's factfinding investigation is an encouraging step to deliver significant relief to Florida's farmers and we are in full, resounding support. Thank you for your time and your full and fair consideration of our comments, consistent with applicable statutes and regulations.
Sincerely,

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