APPENDIX D

LETTER FROM ASSISTANT TRADE REPRESENTATIVE EARLY

EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
WASHINGTON, D.C. 20506

FEB. 23, 1996


Mr. J. Luis Rodriquez
Consultant to Florida Farmers and
Suppliers Coalition
Trans-Tech-Ag, Corporation
P.O Box 5947
Fort Lauderdale, Florida 33310-5947

Dear Mr. Rodriquez:

Ambassador Kantor has asked me to thank you for your letter concerning imports of fresh tomatoes and vegetables from Mexico. The surge in imports from Mexico is of great concern to the growers in Florida and to us. We are working very closely with the Florida Congressional delegation to find solutions to the immediate and longer term problems that have been identified by the fruit and vegetable industry in your state.

We are supporting the following steps to address the surge of tomato imports and other winter vegetables:

  • Safeguard Legislation: The Administration supports legislation recently introduced in Congress which would effectively address a problem with current U.S safeguard law. The current law does not take into consideration the situation where imports enter the U.S. on a seasonal basis and compete only with domestic production from a similar production season. This proposal was passed by the senate on January 25 and we expect will be considered by the House Ways and Means Committee.
  • Section 8e Legislation: The Administration will support legislation addressing concerns raised about Section 8e of the 1937 Act. Under current law, Mexican tomatoes are not subject to the same packaging requirements as Florida tomatoes.
  • TRQ Implementation: The Administration has examined the enforcement of tariff-rate quotas (TRQ´S) for tomatoes. We were able to publish an Advance Notice of Proposed Rulemaking on the weekly tomato TRQ just before the second Federal Government shutdown. Enclosed is a copy of the Advance Notice of Proposed Rulemaking concerning the weekly allocation of NAFTA tariff-rate quotas for fresh tomatoes. We are in the process of receiving comments from all interested parties. Your comments will be included in those we are collecting through the FR notice.
  • Customs Quota Assessments: The United States Customs Service is implementing procedures to ensure the timely collection of most favored nation (MFN) duty rates for products subject to tariff-rate quotas (TRQs). Tariff-rate quotas permit a specified quantity of merchandise to be entered at a reduced duty rate during a specific period. Customs will continue to release goods before the deposit of duty under the immediate delivery procedures.
  • Meetings with Mexican Government and Industry: We will continue our discussions with both the Mexican Government and the Mexican tomato industry to work towards a mutually acceptable solution to this issue. We have already had discussions concerning how best to address the circumstances stemming from the peso devaluation, the deep economic downturn in Mexico, and resulting surge of winter vegetable imports, which are depressing prices in the eastern United States. We recognize that import competition in this sector in Florida from Mexico has been a long term concern.
  • Import Information: USDA will establish a weekly monitoring system for tomato imports. This system will include a weekly USDA report in import and prices. Every effort will be made to shorten the lag time between the date of physical entry and the date of reporting, with our goal being no more than a week. The price data to be reported for imports will reflect daily prices over the course of the week.
  • Mexican Marketing Information: We will make every effort to obtain reliable and timely supply, price and trade information on tomatoes from Mexico. Mexico has not been willing to provide this information to date, but we recognize it is of major importance to Florida growers and we will continue to make a strong effort.
  • Market Promotion: USDA´s Foreign Agricultural Service will work with the industry to develop a more assertive approach to global consumer demand, including through the use of the Market Promotion Program (MPP).
  • Japanese Import Ban: We will redouble our efforts to resolve the tomato import issue (tobacco blue mold) in Japan. This issue was raised by Secretary Glickman during his trip to Japan last August. USDA and USTR will continue to press this case until the Japanese market is open.
  • School Lunch Program: USDA is reviewing possibilities for further purchases of tomatoes on a competitive basis for the school lunch program. USDA´s Agricultural Marketing Service, Food and Nutrition Service, and Food and Consumer Service will continue to work with the Florida industry to identify alternative methods of procurement and distribution of fresh tomatoes to avoid problems resulting from perishability and the short growing season.
  • APHIS Inspectors: USDA has increased the number of APHIS inspectors at Florida points-of-entry and continues to review alternatives to ensure that sufficient resources are available at Miami International Airport.


We believe the steps outlined above represent the most comprehensive approach ever taken in this area, and we look forward to continue working with you to resolve satisfactorily these issues.

Sincerely,

Suzanne Early
Assistant U.S. Trade Representatives
For Agricultural Affairs