Arizona opinion: Arizona can’t afford a new 'tomato tax'
Since the pandemic, inflation has hit families across Arizona. People are feeling an unyielding squeeze on gas, groceries, childcare, and more, and I feel it too. That’s why in Congress, I’m fighting to lower prices and protect pocketbooks — whether on prescription drugs or at the gas pump — for everyday Arizonans. But despite the progress we’ve seen, grocery prices are at risk of rising, and tens of thousands of Arizona jobs are at risk of being eliminated because of a single produce item: the tomato.
That’s because the U.S. Department of Commerce is considering terminating the Tomato Suspension Agreement (TSA), a trade agreement that has set a fair price for the sale of imported tomatoes in the U.S. market for nearly 30 years now, ensuring Americans have access to fresh tomatoes at a low, stable price all year-round. But a handful of rich tomato tycoons in Florida known as the Florida Tomato Exchange (FTE) are trying to impose an unnecessary new “tomato tax” — a tariff of nearly 21% on tomato imports — that will hurt Arizona’s economy and eliminate jobs in our state.
If the agreement is suspended, that’s bad news for Arizonans. A recent Arizona State University analysis found that if import tariffs are imposed on tomatoes because the TSA is terminated, U.S. consumers can expect prices to increase by up to 52%, leading to higher costs at checkout and a loss of $7.53 billion in revenue for grocery retailers nationwide. In Arizona, economic activity would fall by almost $3.4 billion, translating to a loss of more than 22,700 jobs.
For decades, our shoppers, companies, and communities have benefited from access to affordable, high-quality tomatoes imported directly to Arizona from Mexico thanks to the agreement. These tomatoes allow folks across the state to feed their families, grow their businesses, and strengthen their local communities.
But that would cease if the FTE gets its way and has the Commerce Department impose the tariff. The FTE — like any business — has a clear motivation for trying to kill an agreement that has been working well for decades: boosting their own bottom lines at the expense of Arizonans. This new tomato tax would dramatically restrict the supply of tomatoes flowing into the country, therefore reducing competition on grocery store shelves and sending these multimillion-dollar tomato-growing conglomerates’ own profits soaring as a result.
At a time when far too many Arizonans are already struggling with rising costs, does now really seem like the right time to be hiking prices on a staple that our families depend on and slashing thousands of good-paying jobs?
The answer seems pretty clear to me — and I’m not alone in that.
I was proud to join with 33 of my colleagues in Congress — including members of both parties in the House and Senate — to submit a joint letter calling on the Department of Commerce to uphold the TSA and stand with the countless American families, businesses, and workers who depend on it. And what’s more, over 400 American businesses across 32 states — including more than 100 in Arizona — have also raised their voices to do the same.
Here’s the bottom line: We simply can’t afford a new tomato tax. The TSA has been working for Arizona’s consumers, companies, and communities for nearly three decades now. We shouldn’t mess with success. We shouldn’t have to pay the price to pad the bottom line of a few self-interested millionaires.
By: Rep. Ruben Gallego
Source: Arizona Daily Star