Walmart, the nation’s largest retailer, has strongly responded to the U.S. Department of Commerce, challenging important segments of new recommended trade rules for the U.S. import of Mexican tomatoes.
On Sept. 9, James R. (Tres) Bailey, the senior director of federal government affairs for Walmart Inc., emailed the retailer’s position to Jeffrey Kessler, the assistant secretary for enforcement and compliance for the U.S. Department of Commerce in Washington, DC.
Walmart particularly objected to a proposal for a great increase in border inspections for Mexican tomatoes.
Walmart encourages “the Department to consider a model like other inspection programs for imported products that base inspections on risk and need. Given the high quality and low failure rate of Mexican tomatoes, such intensive inspections do not seem proportionate to the risk. in addition, we would suggest the Department implement a ‘trusted trader’ program along the lines of the U.S. Food and Drug Administration's Voluntary Qualified Importer Program (VQIP) which allows qualified importers to receive expedited review and import entry of human and animal foods. We would urge the Department to calibrate the inspections to a more appropriate rate that does not cause delay at the port of entry for tomatoes or other produce items.”
Bailey indicated his response on behalf of Walmart was “to share our analysis of the most recent ‘Draft Agreement Suspending the Antidumping Duty Investigation on Fresh Tomatoes from Mexico.’"
Bailly noted: “Although we import tomatoes from Mexico and Canada, it is important to note that Walmart is a large purchaser of U.S. grown produce items and we are committed to sourcing as much food as we can domestically. Last year, we purchased tomatoes from 21 states across the U.S. from growers. shippers and packers of all sizes. In fact, we have seen strong double-digit growth in our local sourcing program for tomatoes (which we define as sourced and sold within the same state). We are proud of our partnerships with U.S. growers, and we work collaboratively with them to drive innovation and market locally grown produce.”
Bailey continued: “However, to meet customer demand for year-round supply and variety, we also rely on imported tomatoes from Mexico and Canada. Additionally, our customers expect us to invest in innovation and bring new, more flavorful products to the table. Using tomatoes as an example, investment in hot-house production across North America has allowed our customers to access new varieties that are significantly different in taste and use from many field-grown varieties.
“The demand for ‘snacking’ varieties and tomatoes on the vine has significantly increased over the last few years. These ‘snacking’ varieties in addition to Roma and round tomatoes make up much of the product we sell that is sourced from Mexico.”
Bailey expressed appreciation that the recent draft agreement “exempts from inspection tomatoes on the vine, specialty tomatoes and grape tomatoes in retail packages of two pounds or less. These are important varieties in our merchandising portfolio. However, the bulk of tomatoes imported into the U.S. from Mexico are not exempted and would be subjected to an overly burdensome inspection regime.”
He wrote that Walmart has “heard from importers that the inspection requirement in the Draft Agreement would require up to 92 percent of tomato imports to be inspected by USDA. Although the Department of Commerce responses to media suggested a lower inspection rate of 66 percent, this is a substantial increase in the current inspection rates for imported tomatoes.
“Even at the rate assumed by the Department, we are concerned this would create substantial bottlenecks at ports of entry. Any delay in inspections would lead to quality degradation and added cost.”
Walmart, Baily indicated, has “a commitment to our customers to keep our shelves stocked with high-quality, healthy and affordable produce that they’ve come to expect when shopping at Walmart. Under no circumstances would we ever jeopardize our customers health or safety, so we appreciate the need for food safety and other inspections at ports of entry. However, policies like the inspection requirement in the Draft Agreement come at a cost that outweighs the benefits for American consumers.”
Bailey told the DOC that, as the nation's largest retailer, Walmart operates stores “in all 50 states, Washington, DC. and Puerto Rico. With more than 5,300 Walmart and Sam's Club locations, 1.5 million associates, and more than 165 million customer transactions in the US. each week, we are often the retailer that American families rely on to put safe, affordable and high-quality food on the table. In fact, 56 percent of our revenue in the U.S. comes from our grocery division, and more than 90 percent of the US. population lives within ten miles of a Walmart store or Sam’s Club.”
Bailey closed his comments: “…we are hopeful an appropriate balance can be struck in the final agreement.”
