AgNet DEMO

Category: USMCA

  • Georgia Blueberry Producer: You Don’t Have to Have a Ph.D. in Economics to See What’s happening

    Russ Goodman Talks About Impact of Unfair Trade Ahead of Thursday’s Virtual Hearing

    United States of America and Mexico waving flag

    A prominent blueberry producer in Southeast Georgia believes the future of the American family farm could hinge on any action taken as a result of the virtual hearing scheduled for Thursday.

    Russ Goodman is one of several farmers and industry leaders in Georgia who will testify in a virtual hearing on Thursday with the U.S. Trade Representative’s Office. The hearings will provide the U.S. Department of Commerce and Trump Administration an opportunity to hear from growers in Georgia about the urgent need for federal action regarding unfair trade.

    “We started growing blueberries in 2000. In 2010, we hear rumblings about (Mexico) and people saying, ‘Mexico’s going to put you guys out of business.’ I heard that kind of stuff. I normally don’t pay a lot of attention to things like that because you hear a lot of generic statements,” said Goodman, a farmer in Cogdell, Georgia. “In 2010, they sent 1.8 million pounds. Last year they shipped in 63 million pounds. I’m fearful that if something isn’t addressed what it means.

    “It’s not only with Mexico, which is what these hearings are about, USMCA and Mexico and specifically how that affects us, but my friends in the north in Michigan have been farming blueberries for three and four generations. They’re being affected the same thing with Peru right now.”

    Labor Disadvantage

    The biggest concern with farmers in Georgia and Florida – where hearings were held last week – in competing with Mexican imports is the cost of labor. What American farmers have to pay per hour, Mexican farmers can charge per day. How can American growers compete?

    “A third of your costs is going to be labor. They’re down there paying one-tenth of what we’re paying in labor. You take any business on God’s green earth where your competition has a 90% advantage over something that’s a third of your overhead, they’ll eventually put all their competition out of business. The scary thing is, that competition comes in the form of the American family farm,” Goodman said.

    He estimates Mexican farmers only have to pay 81 cents per hour as a minimum wage.

    “You don’t have to have a Ph.D. in economics to see what’s happening and what it’s going to mean long term. We’ve got a blueprint of what’s happened in the past, the tomato industry in Florida. That’s just going to keep going into other things,” Goodman said. “They’re planting 20,000 acres of pecans a year in Mexico from my understanding. I just think we’ve got to, especially in light of this pandemic, we’ve got to re-evaluate where we’re at as far as food security. What keeps us food secure is the American family farm,” Goodman said.

  • Collins, Scott Urge Trump Administration to Protect American Farmers From Mexico’s Unfair Trade Practices

    Doug Collins

    ATLANTA, Ga. – Reps. Doug Collins (R-Ga.) and Austin Scott (R-Ga.) sent a letter to U.S. Trade Representative Robert Lighthizer urging the Administration to protect American farmers from Mexico’s unfair trade practices as it works to implement the United States-Mexico-Canada Agreement (USMCA).

    “As you may know, Mexico’s increased market share of produce and perishable goods at record-low prices in the United States negatively impacts Georgia’s seasonal and perishable produce farmers, as well as those throughout the Southeast,” they wrote. “Over the past several months, we have witnessed the damaging economic and production consequences the coronavirus pandemic has had on crops across the nation. In Georgia, blueberry and vegetable producers are facing not only a decreased market for their goods, but in recent years a market saturated with Mexican products as a result of that country’s unfair trade practices.”

    As they point out, the administration has committed to addressing concerns regarding Mexico’s practices within 60 days from the agreement’s implementation on July 1, 2020.

    “As the Administration works to implement the USMCA, we stand ready to partner with you to ensure trade officials, farmers, and producers find a solution that works for the Southeast’s agriculture industry,” they continued.

    Below is the full letter:

    Austin Scott

    July 14, 2020

    The Honorable Robert Lighthizer
    U.S. Trade Representative
    Office of the U.S. Trade Representative
    600 17th Street, N.W.
    Washington, D.C. 20508

    Ambassador Lighthizer,

    First and foremost, we want to express our appreciation to President Donald J. Trump, you and your office, and many others in the Administration for your hard work on behalf of our nation’s farmers in implementing the United States-Mexico-Canada Agreement (USMCA). This historic trade deal will increase our global competitiveness, strengthen our economy, and most importantly, support our farmers.

    While we are encouraged by the progress that has been made through the USMCA, we are writing today to urge the Administration to address the lack of protections for American farmers against Mexico’s unfair trade practices. As you may know, Mexico’s increased market share of produce and perishable goods at record-low prices in the United States negatively impacts Georgia’s seasonal and perishable produce farmers, as well as those throughout the Southeast. Over the past several months, we have witnessed the damaging economic and production consequences the coronavirus pandemic has had on crops across the nation. In Georgia, blueberry and vegetable producers are facing not only a decreased market for their goods, but in recent years a market saturated with Mexican products as a result of that country’s unfair trade practices.

    We understand the Administration is committed to implementing a timely remedy to address this serious trade issue within 60 days from the agreement’s implementation on July 1, 2020, and we look forward to the Administration’s hearings in Georgia to hear testimony from growers and farmers in our districts. As the Administration works to implement the USMCA, we stand ready to partner with you to ensure trade officials, farmers, and producers find a solution that works for the Southeast’s agriculture industry.

    Again, thank you for your work in creating and implementing an America-focused trade agreement with Canada and Mexico. We are hopeful that your office will work with us to ensure Mexico’s unfair trade practices do not go unaddressed. Please reach out to our offices if we can help facilitate future meetings or hearings with farmers in Georgia.

    Sincerely,

    Doug Collins
    Member of Congress


    Austin Scott
    Member of Congress

  • USMCA Set to Enter Into Force July 1

    The USMCA will enter into force on July 1.

    By Clint Thompson

    Wednesday, July 1 marks a new era for North American Trade.

    The United States-Mexico-Canada Agreement (USMCA) will enter into force July 1. But according to economists and industry leaders, the agreement still does not provide much protection for vegetable and specialty crop producers.

    Florida Fruit and Vegetable Association President Mike Joyner:

    “When Congress passed USMCA, we unfortunately did not get the provisions we were hoping for in USMCA. The Florida delegation, to the person, hung together. Because they hung together, we were able to get a commitment from Ambassador (Robert) Lighthizer to come up with a plan as to how we’re going to address this issue,” Joyner said. “We felt like that was a strong commitment. It’s in writing. We trust Ambassador Lighthizer. Right now, all indications are USMCA will go into effect July 1.

    “If you go back and look at the letter, the commitment that the delegation was able to get, that within 60 days of entry into force, Ambassador Lighthizer has to have a plan. We’ll present some information to the U.S. Trade Representative’s Office that they need to consider. It’s data that clearly shows what’s happening with Mexican produce. We’re hoping that over the next two or three months, we can work with Ambassador Lighthizer and his team and come up with something that will help solve this issue.”

    University of Georgia Extension Ag Economist Adam Rabinowitz:

    “The concern with the USMCA, in terms of specialty crops, is that there are a lot of lower priced crops, low cost labor in Mexico that are coming into the U.S. and competing with southeast fruits and vegetables. There was hope that there would be some restrictions or some assistance that would help with the ability to compete with those Mexican imports. But there was nothing within that. As a result, it’s looking like there’s going to be a challenge in terms of being able to compete on price with the southeast fruits and vegetables with the imports from Mexico.”

    Charles Hall, executive director of the Georgia Fruit and Vegetable Association:

    “It’s insulting to the specialty crop growers who are suffering with COVID-19. It’s taken away markets. Then on top of that, we’ve got Mexican products coming in on top of us to drive the prices even further down.”

    According to the USMCA press release, the agreement marks the beginning of a historic new chapter for North American trade by supporting more balanced, reciprocal trade, leading to freer markets, fairer trade, and robust economic growth in North America. However, Southeast farmers still will compete against imports of Mexican produce.

  • Florida Blueberry Farmer: USMCA Not a Good Deal For Vegetable, Specialty Crop Producers

    By Clint Thompson

    One of the most vocal critics of Mexican imports into the U.S. is adamant that the United States-Mexico-Canada Agreement will not help or protect vegetable or specialty crop producers.

    Blueberries are a popular commodity in the U.S. but also as an import from Mexico.

    “No, that’s not a good deal for specialty crops. They didn’t really address our issues at all. That was not a good deal for us,” said Ryan Atwood, blueberry farmer, who lives in Mount Dora, Florida, and is one of the state’s blueberry leaders. He farms 56 acres of blueberries, manages another 350 acres and is part-owner of the largest packing house in the Southeast United States.

    USMCA Background

    According to the USMCA, the agreement, once it enters into force on July 1, will support mutually beneficial trade leading to freer markets, fairer trade and robust economic growth in North America. But critics of the agreement will point to lack of protection for specialty crop farmers who already have to compete against imports of Mexican produce. U.S. Secretary of Agriculture Sonny Perdue even acknowledged concerns by specialty crop growers.

    The idea of fair trade seems more like a fantasy than reality for growers in the Southeast who, not only had to overcome the coronavirus pandemic this year but had to compete against the constant influx of Mexican imports.  

    “They don’t have the regulations we have. They don’t have to abide by the same rules. Their labor is definitely cheaper. They pay somebody $12 per day. I’ve got to pay them $12 an hour to get labor. It’s hard to compete with that. It’s real hard to compete with that,” Atwood said.

    Domestic Supply of Food

    Atwood commented in late April that he was “a fan of having our own domestic supply of food.” Agricultural imports from Mexico may be cheaper, but they’re not American grown. Atwood and Florida vegetable farmer Sam Accursio continue to preach the importance of supporting the American farmer.

    “I think it’s a security issue for our country,” Atwood said in late April. “We’ve got to grow our own food. You saw what happened 10 or 12 years ago when we used to import all that oil and then we got our own domestic supply going again. Other countries are going to be able to control you if they control your food supply.”

    Accursio added, “If you take Florida and California away in the winter, what do you have? You have third-world countries feeding this great nation, and I’m not going to eat it. I’m not going to do it.”