Seasonal Fruit and Vegetable Competition in U.S.-Mexico Trade

Seasonal Fruit and Vegetable Competition in U.S.-Mexico Trade

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Updated February 22, 2023
Seasonal Fruit and Vegetable Competition in U.S.-Mexico Trade
As part of the United States-Mexico-Canada Agreement
the USMCA negotiation included a proposal to establish
(USMCA) negotiation, the United States attempted to
new rules for seasonal and perishable fruits and vegetables.
resolve ongoing trade imbalances with Mexico for seasonal
The U.S. proposal would have established a separate
and perishable fruits and vegetables through rule changes to
domestic industry provision for perishable and seasonal
U.S. trade laws. American negotiators had hoped such
products in AD/CVD proceedings, making it easier for a
changes could make it easier to initiate trade remedy cases
group of regional producers to initiate an injury case and
against (mostly Mexican) exports to the United States and
prove injury, thereby resulting in AD/CVD duties on the
would respond to complaints by some fruit and vegetable
imported products responsible for the injury. The approach
producers, mostly in southeastern U.S. states, who claim to
embodied in the U.S. proposal could have protected some
be adversely affected by import competition from Mexico.
U.S. seasonal produce growers by making it easier to
Several Members of Congress from those states have
initiate trade remedy cases. The U.S. International Trade
supported such actions; however, USMCA, which came
Commission (USITC) has previously reviewed trade
into force in 2020, did not include seasonal produce
remedy cases involving perishable produce—such as Fall-
protections. Congress has continued to consider legislation
harvested Round White Potatoes from Canada and Spring
that would establish protections for seasonal produce.
Table Grapes from Chile—that proved difficult to settle.
U.S. Fruit and Vegetable Trade Situation Figure 1. Global U.S. Fruit and Vegetable Trade
The United States has been a net importer of fresh and
processed fruits and vegetables since the 1990s (Figure 1).
In 2022, the gap between total U.S. imports and exports of
fresh and processed fruits and vegetables (excluding nuts)
totaled more than $37.4 billion. For historical background
on the market and trade conditions that may be influencing
this trade imbalance, see CRS Report RL34468, The U.S.
Trade Situation for Fruit and Vegetable Products.
Mexico accounts for nearly half of the value of U.S. fruit
and vegetable imports. In 2022, U.S. imports of fresh and
processed fruits and vegetables from Mexico amounted to
$20.2 billion, while U.S. exports to Mexico totaled $1.3
billion, resulting in a trade deficit of $18.9 billion in these
products (excluding nuts) (Figure 2). Several factors have
contributed to this trade imbalance, including relatively

open and free trade between the United States and Mexico
Source: CRS from data in the USITC’s Trade DataWeb database.
and increased year-round demand for fruits and vegetables
Note: Fresh and processed products (Harmonized Tariff Schedule
and counter-seasonal import supplies, which have
[HTS] chapters 07, 08, and 20, excluding nuts [HTS 0801-0802]).
benefitted U.S. consumers. Production of some Mexican
fruits and vegetables—tomatoes, peppers, berries,
Figure 2. U.S.-Mexico Fruit and Vegetable Trade
cucumbers, and melons—has increased in recent years in
part due to Mexico’s investment in large-scale greenhouse
facilities and technological innovations, which some claim
has been supported by the Mexican government and should
be subject to antidumping and countervailing duties
(AD/CVD) proceedings on U.S. imports. Trade concerns by
growers in Florida and Georgia have primarily centered on
imported tomatoes, peppers, and berries (Figure 3). For
more historical background, see CRS Report R45038,
Efforts to Address Seasonal Agricultural Import
Competition in the NAFTA Renegotiation.
Efforts in USMCA Negotiation
The Trump Administration attempted to resolve concerns
about this trade imbalance with Mexico through the

USMCA negotiation. U.S. agriculture-related objectives in
Source: CRS from data in the USITC’s Trade DataWeb database.
https://crsreports.congress.gov

Seasonal Fruit and Vegetable Competition in U.S.-Mexico Trade
Note: Fresh and processed products (HTS chapters 07, 08, and 20,
Ongoing Efforts
excluding nuts [HTS 0801-0802]).
Efforts to enact trade remedies on seasonal and perishable
produce continue. Hearings held by USTR in August 2020
As ratified, USMCA did not include changes to U.S. trade
highlighted concerns on both sides of the issue. USTR
remedy laws to address seasonal produce trade. At a July
released its plan for seasonal and perishable produce in
2019 congressional hearing, former U.S. Trade
September 2020, which initiated certain U.S. trade remedy
Representative (USTR) Robert Lighthizer indicated that
investigations, among other actions. Separately, in 2021,
attempts to include such provisions were not successful,
the Department of Commerce implemented regulations
citing opposition by Mexican negotiators.
intended to improve the administration and enforcement of
AD and CVD laws (86 Federal Register 52300).
Figure 3. U.S. Imports of Mexican Produce, 2022
Section 201 Blueberry Investigation
In 2020, USITC conducted a global safeguard investigation
into blueberry imports under Section 201 of the Trade Act
of 1974 (19 U.S.C. §§2251-2254), as requested by USTR.
A Section 201 investigation refers to trade remedy actions
designed to provide temporary relief for a U.S. industry
(e.g., additional tariffs or import quotas) to facilitate
adjustment of the industry to import competition. USITC
voted to terminate its investigation in 2021 after it
determined that increased imports of fresh, chilled, or
frozen blueberries are not a substantial cause or a threat of
serious injury to the U.S. blueberry industry.

Source: CRS from data in the USITC’s Trade DataWeb database.
Section 332 General Fact-Finding Investigations
Note: Fresh and processed products (HTS chapters 07, 08, and 20,
In 2020, USITC launched two general fact-finding
excluding nuts [HTS 0801-0802]).
investigations of strawberries and bell peppers under
Section 332 of the Trade Act of 1930 (19 U.S.C. §1332).
Support and Opposition to Proposal
USTR requested these investigations “to monitor and
Views regarding seasonal produce protections in trade
investigate imports of strawberries and bell peppers, which
agreements are mixed. Although most lawmakers from
could enable an expedited Section 201 global safeguard
Florida and Georgia called on USTR to include seasonal
investigation.” USITC initiated two other investigations of
protections in USMCA, others in Congress opposed such
seasonal cucumbers and squash with a focus on the U.S.
changes, contending that seasonal imports complement
Southeast, as requested by USTR on behalf of some
rather than compete with U.S. growing seasons. Legislation
Members of Congress from Georgia. Under a Section 332
seeking changes to U.S. trade laws to address seasonal
general fact-finding investigation, USITC may investigate a
produce concerns was first introduced in 2015 and
wide variety of trade aspects of any matter involving tariffs
reintroduced in each subsequent Congress, including in the
or international trade, including conditions of competition
118th Congress (Defending Domestic Produce Production
between the United States and foreign industries.
Act, H.R. 545/S. 104). Others have claimed such
protections could open the door to an “uncontrolled
Other Requested Investigations and Actions
proliferation of regional, seasonal, perishable remedies
In October 2022, USTR announced plans to “establish a
against U.S. exports.” The Fresh Produce Association of the
private-sector industry advisory panel to recommend
Americas has contended that such efforts would favor a few
measures to promote the competitiveness of producers of
“politically-connected, wealthy agribusiness firms from
seasonal and perishable produce” with a focus on the U.S.
Florida” at the expense of both consumers and growers in
Southeast. Accordingly, USTR and USDA will work with
other fruit and vegetable producing states, such as
an advisory panel “to develop possible administrative
California. At a 2017 House Agriculture Committee
actions and legislation that would provide real benefits to
hearing, lawmakers from California and other states
this struggling industry.” This action was announced as part
highlighted the benefits of imports from Mexico to U.S.
of USTR’s rejection of a petition from Florida tomato
consumers and the U.S. produce industry.
growers requesting protections under Section 301 of the
Trade Act of 1974 (19 U.S.C. §§2411-2420). Section 301
Most U.S. food and agricultural sectors, including some
provides authority for USTR to impose trade sanctions on
fruit and vegetable producer groups, opposed including
foreign countries that violate U.S. trade agreements or
seasonal protections in USMCA. Some asserted that efforts
engage in acts that are “unjustifiable” or “unreasonable”
to push for seasonal protections could have derailed the
and burden U.S. commerce. Some industry groups have
USMCA negotiation altogether. The Agricultural Technical
also encouraged USTR to launch a 301 investigation of
Advisory Committee for Trade in Fruits and Vegetables
Mexican trade practices and policies involving seasonal and
(F&V ATAC), which advises USTR on behalf of the
perishable produce. To date, USTR has not initiated such an
industry, did not support adding seasonal provisions to the
investigation. While some in Congress support such
USMCA negotiation. The F&V ATAC voted to withdraw
investigations, others in Congress oppose such efforts.
the seasonal and perishable trade remedy proposal from the
U.S. negotiating objectives in 2018.
Renée Johnson, Specialist in Agricultural Policy
https://crsreports.congress.gov

Seasonal Fruit and Vegetable Competition in U.S.-Mexico Trade

IF11701

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