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U.S. International Trade Commission

The imports of fresh-market peppers from Mexico and Canada have risen in recent years, in part as a result of the staged reduction and elimination through 2005 of the duties on fresh peppers under the North American Free Trade Agreement (NAFTA). Adding to the growth of trade among the three member countries has been the increase in greenhouse-growing facilities in each country, allowing for the production and shipments of fresh peppers during those seasons when outdoor production is usually reduced or non-existent because of weather. U.S. imports of fresh-market peppers amounted to $450.8 million in 2005, accounting for 53 percent of U.S. consumption of $843.4 million. U.S. exports amounted to $90.4 million in 2005 and remain small relative to production and consumption. The bulk of the imports are field-grown peppers from Mexico and enter principally through Arizona. By contrast, the bulk of the imports from Canada are greenhouse-grown peppers raised in Toronto and British Columbia, and enter mainly through U.S. Customs Districts nearest to those Canadian production areas. Grower prices for producing fresh peppers continue to lag far behind retail prices charged in grocery stores and at wholesale terminal markets.