Mexico Firms See Bigger Hit From Local Problems Than Trade Risk
Bloomberg recently published an article headlined Mexico Firms See Bigger Hit From Local Problems Than Trade Risk, which discusses the persistent cartel influence and impact on Mexico's businesses and exports, highlighting avocados as an example.
From the article: Persistent crime, uncertainty surrounding a judicial overhaul and tougher tax enforcement are weighing more heavily on companies than US tariffs and doubts over the future of the trade relationship, according to José Medina Mora, president of Mexico’s Business Coordinating Council (CCE). The head of the country’s top business lobby singled out lawlessness, especially costly extortion rackets, as a major drag that President Claudia Sheinbaum must address.
“In some regions of the country, extortion has evolved to take over the distribution of goods,” Medina Mora said in a recent interview. He pointed to border states like Sonora, Colima on the Pacific coast, and avocado-producing powerhouse Michoacán.
He described how criminal groups have moved beyond demanding protection payments to controlling product deliveries, inserting themselves between suppliers and customers.
The president of the California Avocado Commission, Ken Melban, issued the following statement in response:
“When Mexico’s own leading business group acknowledges that rampant cartel crime and extortion pose a greater threat to commerce than U.S. trade uncertainty, our leaders in Washington must take notice. Cartels are extorting growers, controlling distribution, and siphoning off money from avocado sales to American consumers. That means Americans are unknowingly helping fund the very cartels President Trump has called ‘the ISIS of the Western Hemisphere.’ Meanwhile, surging Mexican avocado imports at unsustainably low prices are threatening the future of California family farms. Without reasonable seasonal limits on import volumes, our growers will continue to pay the price. America First and Make America Healthy Again must include protecting the American farmers who grow our healthy, whole foods. That’s why we’re calling for a seasonal tariff-rate quota to give our growers a chance against the cartels,” Melban said.
California Lawmakers Push for Mexican Cartel-Owned Avocado Ban
The Daily Signal recently published an article entitled, California Lawmakers Push for Mexican Cartel-Owned Avocado Ban. According to the article, “All the Republicans in California’s congressional delegation are advocating for tighter restrictions on the Mexican avocado trade in an effort to thwart Mexican drug cartels.” Further, the article noted that
in their letter ”the lawmakers added that Mexican drug cartels, which have allegedly stolen avocado farms from law-abiding Mexican citizens, are now profiting from the sale of those avocados while interfering with U.S. Department of Agriculture inspections and controlling transportation routes.”