Require Strict Mexican Compliance With FSMA, Protect Organic Equivalency in NAFTA, Agriculture Groups Say
A renegotiated NAFTA should require Mexico’s strict compliance with Food Safety Modernization Act (FSMA) standards, include relief mechanisms for the U.S. to offset depressed wages for Mexican farm workers, and protect organic equivalency arrangements reached between parties, agriculture industry representatives told interagency Trump administration officials June 27. During a hearing at the International Trade Commission convened by the Office of the U.S. Trade Representative, J&J Family of Farms Director of Farming Richard Bowman said along with requiring imports of Mexican food to undergo the same requirements as U.S.-farmed foods under FSMA, an updated NAFTA should also address dumping of cheap Mexican produce in the U.S., perhaps through mechanisms such as weekly quotas.
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To circumvent restrictions on certain Mexican agricultural exports to the U.S., Mexican produce is often trans-shipped through the U.S. to Canada, then imported back into the U.S., Bowman added. This should be addressed, too, he said. If NAFTA isn’t renegotiated, Mexico could gain control of the entire U.S. agriculture market, Bowman said.
Mexican government subsidies aimed at promoting year-round production of fruits and vegetables can cover up to 50 percent of production costs, and are hurting the U.S. crop industry, along with “dramatically lower labor costs” and very low prices, Florida Fruit and Vegetable Association President Michael Stuart said. Mexico is believed to be dumping strawberries and bell peppers in the U.S., and Mexican farm laborers earn about 10 percent of what Florida farm laborers earn, he said.
Maintaining organic equivalency arrangements is “key” in any updated NAFTA, as the U.S. relies on Mexico for fresh organic produce in the winter, Canada and Mexico account for more than 75 percent of U.S. organic exports, and the U.S. runs an organic trade surplus with its bordering neighbors, Organic Trade Association (OTA) Director of International Trade Monique Marez said. The U.S. currently has an organic equivalency arrangement with Canada, and talks with Mexico are ongoing, she said. The arrangements eliminate duplicative agricultural certifications, and talks with Mexico should proceed outside of NAFTA proceedings, Marez said. OTA also supports increased access for U.S. dairy products into Canada, which has been cited as an irritant in the bilateral trade relationship, Marez said (see 1706200020).
But the National Family Farm Coalition supports the Canadian dairy pricing program, said Betsey Garrold, a member of the group, adding that the U.S. government should regulate domestic milk production and pricing, and that the U.S. should export high-quality “instead of low-quality” dairy products. Despite calls from some to use the Trans-Pacific Partnership as a template for NAFTA negotiations, Garrold called for the omission of TPP provisions that would have expedited approvals for agricultural and biotech products “in ways that bypass national efforts to assess their safety, effectiveness, and impact on workers, rural communities, and ecosystems,” she said.
Citing the harm on U.S. farmers caused by low-priced imports, Garrold also said internationally agreed-upon collective bargaining standards should be reflected in NAFTA. Further, the U.S. should ensure that Mexico and Canada stop taking action under their country of origin labeling (COOL) dispute with the U.S., after a World Trade Organization dispute panel authorized the countries to raise tariffs on certain U.S. exports in retaliation for U.S. COOL regulations on muscle cuts of meat, she said. “COOL enables consumers to know the origins of their food and producers to receive a fair price,” Garrold said.