American fresh produce growers and shippers have no way to collect when a Mexican buyer defaults or goes bankrupt, and a bipartisan group of 37 House members has asked the Trump administration to close that gap through the USMCA process.

The lawmakers, including Rep. Jim Costa of California, a senior member of the House Agriculture Committee, wrote to Julie Callahan, chief agricultural negotiator at the Office of the US Trade Representative, and Luke Lindberg, USDA under secretary for trade and foreign agricultural affairs.

They want Mexico to adopt protections equivalent to the US Perishable Agricultural Commodities Act (PACA), whose trust has long backstopped produce sellers when a buyer becomes insolvent. Canada added its own version for fresh fruit and vegetable sellers in 2024 under Bill C-280; Mexico has no comparable mechanism.

"American growers and shippers should have confidence that they will be paid for the products they sell abroad," the letter says, asking the administration to secure a commitment from Mexico so that reciprocal protection exists across all three USMCA countries.

The gap matters because Canada and Mexico are by far the largest export markets for US produce. North American trade has helped US produce exports grow from $1.4 billion in 1995 to $6.2 billion in 2024, an increase of more than 330%.

The request comes as US-Mexico talks proceed ahead of the 2026 USMCA review, which includes agriculture. Costa's office said the lawmakers presented the payment gap as a priority for an administration seeking to narrow the agricultural trade deficit and expand specialty crop exports.

Photo: BrianZim / Wikimedia Commons (CC BY 2.0)

Source: AGDAILY