However, Florida was not alone in expressing concern about the agreement prior to its negotiation. Numerous fruit and vegetable producer organizations throughout the nation also believed they would be faced with increased competitive pressure from Mexico. Florida fears were based not solely on the impact of tariff reductions in the competitive relationship between the two growing areas. Growers also were deeply concerned about the impact of increased investment in Mexico's agricultural sector that would occur as a result of the agreement. The overriding fear was that Mexico, with lower labor costs and less costly and restrictive labor and environmental regulations, would eveities, resulting in severe injury to Florida growers.
Statistical data show that Florida growers have lost significant ground in the domestic marketplace.
Less than one year following the implementation of the agreement, Mexico entered into its worst economic crisis in decades. The peso devalued significantly against the dollar late in 1994, and continued to devalue throughout 1995 and 1996. Had Congress known, it is unlikely the agreement would have been approved. Other factors related to the agreement have also contributed to the Florida industry's decline. Immediately prior to, and since, the implementation of the agreement, considerable investment capital has flowed into the Mexican industry from non-traditional sources.