Snag in Free-Trade Accord a Relief to Wary Farmers

Faced with wilting crop prices and shriveling profit margins, Ventura County growers were largely pleased when the North American Free Trade Agreement stalled last week, postponing a much-feared flood of competing fruit and vegetables from Mexico.

Although some farmers, especially lemon growers, could benefit handsomely from unfettered trade with Mexico, Ventura County’s agricultural leaders have been wary about the accord, a daunting, 2,000-page document.

So when a federal judge ruled Thursday that the agreement requires a full environmental impact report, most local growers expressed relief.

The Clinton Administration has announced plans to appeal the judge’s decision, vowing to push for congressional ratification of the free-trade agreement in January. But if the order for an environmental analysis is upheld, the pact could be delayed months or even years.

“That doesn’t break my heart,” said Chris Taylor, a citrus grower and president of the Ventura County Farm Bureau. “I think in the short term, (the accord) would hurt Ventura County growers.”

The complex treaty, which would remove tariffs on most trade within North America over the next 15 years, won approval from the leaders of Canada, the United States and Mexico last October. But the U.S. Congress has not yet ratified the document.

Just about everyone agrees that opening the border with Mexico would significantly shake up Ventura County’s $700-million-a-year agriculture industry, which ranks top in the state for lemon and orange production, and takes second place for avocados.

Beyond that consensus, however, farmers from Moorpark to Oxnard have split on the merits of the free-trade agreement. The U.S.-Canada border has been open for five years under a separate treaty, so most attention has focused on America’s southern neighbor.

Citrus growers generally thrill at the thought of an open Mexican market, since lemons are more popular south of the border than they are in the United States. Now, exports are hampered by a 20% Mexican tariff on U.S. citrus. But the free-trade agreement would scrap that tax immediately.

While citrus ranchers look forward to open borders, vegetable growers tend to be more leery. Mexican produce has already taken over a sizable chunk of the U.S. winter market, despite protective tariffs ranging from 8.6% on lettuce to 12.5% on broccoli.

Avocado growers, too, fear the free-trade agreement. They worry that Mexican competitors may glut the U.S. market--an especially scary thought this year, when a bumper crop has sent prices tumbling.

The United States has banned avocado imports from Mexico since 1914 in order to keep a devastating seed-weevil pest from entering this country. The free-trade pact would keep that quarantine intact as long as it could be scientifically justified. But avocado growers fear the government may be pressured into reversing its ban.

“I worry that science could be compromised by politics,” said Somis grower John Borchard. Overall, however, Borchard said he supports the free-trade pact and considers the most recent delay “a crying shame.”

His position illustrates the ambivalence many Ventura County farmers have about the accord--especially those, like Borchard, who grow both avocados and citrus.

“I’d like to see the agreement stalled, but if changes were made to protect avocados better, I’d be in favor of it,” said Tom Pecht, who farms 30 acres of avocados and 85 acres of citrus.

As is, the treaty gives American growers a small cushion. Mexican tariffs of up to 20% on incoming citrus, cut flowers and most vegetables would be eliminated immediately under the pact.

But American protective tariffs on those commodities would be phased out over several years, said Cherie Watte, the international trade specialist for the California Farm Bureau.

Furthermore, if yearly imports of various vegetables from Mexico exceed a certain threshold, the American tariffs would automatically increase, Watte said. The accord treats each commodity separately, imposing a dizzying array of regulations.

With all the controversy about the free-trade agreement, several local growers said they were glad ratification may be delayed--if only so they have more time to analyze the treaty and lobby their representatives for more favorable treatment.

“It’s really tough to quantify what the effect will be,” avocado and citrus grower Rob Brokaw said. “I’m a little relieved that we’ll have more time to study the implications.”