Feds to seek trade investigation following Georgia farmers’ complaints

From left: President Enrique Peña Nieto of Mexico, President Donald Trump and Prime Minister Justin Trudeau of Canada sign a new free trade agreement, called the United States-Mexico-Canada Agreement, on the sidelines of the G-20 summit in Buenos Aires, Argentina, Nov. 30, 2018. The USMCA deal replaces the North American Free Trade Agreement, or NAFTA. (Tom Brenner/The New York Times)

Credit: NYT

Credit: NYT

From left: President Enrique Peña Nieto of Mexico, President Donald Trump and Prime Minister Justin Trudeau of Canada sign a new free trade agreement, called the United States-Mexico-Canada Agreement, on the sidelines of the G-20 summit in Buenos Aires, Argentina, Nov. 30, 2018. The USMCA deal replaces the North American Free Trade Agreement, or NAFTA. (Tom Brenner/The New York Times)

The Trump administration is requesting a trade investigation into blueberry imports from Mexico, a move aimed at assuaging the concerns of Southeastern farmers who warn that produce subsidies from that country are threatening their business.

In a 28-page report released late Tuesday, the administration detailed a series of actions that could open the door to tariffs down the road.

“President Trump recognizes the challenges faced by American farmers and is committed to promoting and securing fair trade and a level playing field for all American producers,” said U.S. Trade Rep. Robert Lighthizer, whose office is working with the Department of Agriculture and the Department of Commerce.

The agencies said they are requesting a U.S. International Trade Commission investigation under Section 201 of federal trade law because Mexican blueberry imports “have caused serious injury” to domestic berry growers. If the commission finds harm, the White House could impose tariffs.

Section 201 is the same rarely invoked trade clause Trump used to slap duties on solar imports in 2018 after a Norcross-based solar panel manufacturer, Suniva Inc., filed for bankruptcy and petitioned the trade commission.

The Trump administration is also requesting senior-level talks with Mexican officials in the months ahead to address concerns about the imports of strawberries, bell peppers and other seasonal produce into the U.S. It plans to work with American farmers to record instances of produce dumping that could lead to other trade investigations.

The Mexican Ministry of the Economy said it will look for “complimentary” solutions for both countries while defending the “preferential access of Mexican agricultural exports to the United States.”

The actions came two weeks after Georgia officials and farmers testified at a federal hearing that Mexican trade policies made it all but impossible for them to compete.

Produce farmers from Georgia and Florida sought new trade remedies in the U.S.-Mexico-Canada free trade agreement, but no additional help was included in the final deal.

Agriculture is Georgia’s largest single industry, with a total economic impact of $76 billion, and the state is a major grower of blueberries. One University of Georgia study estimated the state could lose nearly $1 billion in annual economic output and more than 8,000 jobs “unless something occurs to slow down the increase in low-priced Mexican imports of blueberries and vegetables.”

U.S. Sen. Kelly Loeffler called the administration’s new pledges “a crucial step” and welcomed news for Georgia farmers.

“We will not let Georgia farmers be pushed out of their own market,” the Republican said.

U.S. Rep. Austin Scott, a Republican from Tifton, also cheered the move while urging American supermarkets to prioritize U.S.-grown produce.

“America’s grocery retailers are posting record profits while American farm revenues are at record lows. Retailers have the responsibility to stop stocking products from countries that engage in unfair trade practices against the American farm family,” the five-term congressman said.

Farmers are a key demographic for Trump as he seeks reelection. His administration steered billions in aid payments to growers harmed by Chinese tariffs.