Costa Leads Bipartisan Push to Protect American Produce Growers in U.S.-Mexico Trade

WASHINGTON - Congressman Jim Costa (CA-21), a senior member of the House Agriculture Committee, joined Representatives Dan Newhouse (WA-04), David Rouzer (NC-07), Kristen McDonald Rivet (MI-08), Jimmy Panetta (CA-19), and Monica De La Cruz (TX-15) in leading a bipartisan push urging the Trump Administration to secure stronger payment protections for American fresh produce growers and shippers doing business in Mexico through the United States-Mexico-Canada Agreement (USMCA) process.

In a letter to U.S. Trade Representative Chief Agricultural Negotiator Julie Callahan and U.S. Department of Agriculture Under Secretary for Trade and Foreign Agricultural Affairs Luke Lindberg, the lawmakers called on the Administration to secure protections in Mexico equivalent to those provided under the U.S. Perishable Agricultural Commodities Act (PACA). While American produce sellers have payment protections at home and Canada has established comparable protections, U.S. growers and shippers selling into Mexico remain exposed when buyers fail to pay or become insolvent. 

In their letter, the lawmakers wrote: 

“As the Administration works to reduce the agricultural trade deficit and expand export opportunities for U.S. specialty crops, American growers and shippers should have confidence that they will be paid for the products they sell abroad. Accordingly, we respectfully request that the Administration prioritize securing a commitment from Mexico through the USMCA process to establish protections for sellers of perishable agricultural commodities equivalent to those provided under the U.S. PACA Trust and Canada's Bill C-280. Establishing such a mechanism would create reciprocal protections across all three USMCA countries and provide greater certainty for American growers and shippers doing business across North America.” 

The full letter can be found HERE. 

BACKGROUND:  
The Perishable Agricultural Commodities Act (PACA) has long provided U.S. growers and produce sellers with important protections when buyers fail to pay or become insolvent. In 2024, Canada enacted similar protections for fresh fruit and vegetable sellers, providing greater financial certainty for produce transactions in both countries. 
 

Mexico does not currently provide U.S. growers and shippers with equivalent protections, leaving American sellers exposed when buyers fail to pay. As the United States and Mexico continue negotiations related to the 2026 review of the USMCA, including discussions on agriculture, Costa and his bipartisan colleagues are urging the Administration to close that gap and establish consistent payment protections for produce sellers across North America.