LATIN AMERICA ADVISOR

LATIN AMERICA ADVISOR

A daily publication Of the dialogue

February 28, 2022

How Much Are Gangs Harming U.S.-Mexico Trade?

The United States temporarily halted avocado imports from Mexico this month because of threats made to a U.S. inspector. An avocado farm in Mexico’s Michoacán state is pictured. // File Photo: Mexican Government.

Q

A

Thomas M. Fullerton Jr., professor and Trade in the Americas Chair in the Department of Economics and Finance at The University of Texas at El Paso: “The temporary suspension of avocado imports from Michoacán caught companies in both countries by surprise. The tone-deaf initial response of President López Obrador was perplexing, but not exactly surprising. Mexico is one of only 27 countries where the U.S. Department of Agriculture’s (USDA) Animal and Plant Health Inspection Service (APHIS) has stationed overseas inspectors. Having a local APHIS presence expedites agricultural exports to the United States and helps small orchards. U.S. imports of Hass variety avocados exceed $3 billion. USDA data indicates that more than 90 percent of those imports are from Mexico. The majority of the avocados exported from Mexico are grown in Michoacán. Financial gains generated by exports have attracted both investment by and interference from organized crime in the region. Orchard owners are frequently subjected to extortion, land confiscation and ‘security service taxation.’ APHIS inspectors also attract the attention of…”

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