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Op-Ed: Special interests try to stifle
food imports, harm the economy
[The Center Square] Johnny Kampis and
Daniel Savickas
As American growers work
with their allies in the federal government to limit imported fruits and
vegetables, American consumers face a hit to their pocketbooks in the
form of higher prices at the grocery store. |
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 In recent years, farmers and growers associations have amped up
their efforts at protecting their members by pushing members of Congress and
high-ranking officials in the federal government to slap tariffs and price
minimums on commodities imported into the U.S.
One of the latest of these, the Tomato Suspension Agreement, removed a tariff
placed on tomatoes imported from Mexico, but established a higher “reference”
price. The Department of Commerce said these price minimums were designed to
“prevent the suppression or undercutting” of tomatoes grown in the U.S.
Such decisions are bolstered by research, even as the
motivation behind the research might be called into question. For example, a
study by University of Florida associate professor Zhengfei Guan stated that
U.S. tomato growers could lose as much as $252 million annually if imports from
Mexico increase by 50 percent in coming years.
Guan studies food and resource economics at UF’s Institute of Food and
Agricultural Sciences (IFAS), which has been the go-to source for studies that
support the efforts of growers to suppress imports.
A June 2019 study by IFAS co-authored by Guan said a 75% increase in imports for
bell peppers, strawberries, and tomatoes would result in losses of $389 million
for Florida growers. The study echoed similar findings from a study conducted by
researchers at the University of Georgia.
The organizations involved in both the Florida and Georgia studies enjoy close
ties to the growing industry. And, unsurprisingly, the concerns raised in the
research stood to benefit growers affected by the U.S.-Canada-Mexico (USCMA)
Agreement that former President Donald Trump signed to replace the North
American Free Trade Agreement.
As the Taxpayers Protection Alliance previously reported, a number of members of
growers’ associations in Florida serve in various capacities with IFAS. This
includes Florida Blueberry Growers Association Board of Directors members Gary
England, Jeffrey G. Williamson and Philip Harmon; Florida Tomato Exchange member
Bob Spencer and Florida Fruit & Vegetable Association member Peter Chaires.
Both the Georgia state growers association and UGA share the same lobbyist, Bob
Redding, who has been a key player for the agricultural industry in that state.
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Research from organizations not affiliated with the
special interests that would benefit domestic growers paint a
different picture.
A study from the University of Arizona found that new inspection
requirements on tomatoes imported from Mexico could incur
significant financial loss due to delays in tomato shipment
delivery, and that the U.S. could be in violation of international
trade agreements with its new policies.
 The study
also pointed out “the US [Technical Barriers to Trade] measures
could potentially harm US export markets in the future, as countries
could impose reciprocal barriers to trade.”
Such protectionism is becoming commonplace, as special interests get
their bureaucratic cronies to initiate investigations into imports
in hopes of getting relief. But it doesn’t always work. The U.S.
International Trade Commission ruled in February that blueberries
aren’t being imported into the country in such large quantities to
harm the domestic industry for that crop, following a request for a
Section 201 investigation into Mexican imports. But the
investigation created uncertainty and delayed imports, which harmed
businesses that count on low-cost blueberries.
The protectionist measures that ramped up during the Trump
administration cost 300,000 jobs before the COVID-19 pandemic hit,
according to Moody’s Analytics, and Reuters reported the tariffs
cost American companies $46 billion. Those companies had to cut
costs, raise prices and lay off workers as a result of the increased
taxes, according to the report. And, while the
growers’ special interests emphasize harm to farmers, other studies,
such as this examination from Texas A&M, show that the American
economy wouldn’t be as successful without plenty of imports. In just
California, Texas, New Mexico and Arizona, agricultural imports from
Mexico accounted for nearly $784 million in economic output in 2017.
Giving preference to domestic growers harms American businesses that
rely on imports. U.S. businesses will be hurt either way, but only
one side is demanding government interference to tip the scales in
its favor by keeping competition out of the country.
Johnny Kampis is a senior fellow and investigative
reporter for the Taxpayers Protection Alliance. Daniel Savickas is
the government affairs manager for the Taxpayers Protection
Alliance. |
