Avocado - Avocado-related International Trade Issues

Avocado-related International Trade Issues

After the North American Free Trade Agreement (NAFTA) went into effect in 1994, Mexico tried exporting avocados to the US. The US government resisted, claiming the trade would introduce Tephritidae fruit flies that would destroy California's crops. The Mexican government responded by inviting USDA inspectors to Mexico, but the U.S. government declined, claiming fruit fly inspection was not feasible. The Mexican government then proposed to sell avocados only to the northeastern US in the winter (fruit flies cannot withstand extreme cold). The US government balked, but gave in when the Mexican government started erecting barriers to US corn.

Another argument is that the lower prices generated by Mexican (and Chilean) imports would increase the popularity of avocados outside of California, thereby assuaging the loss of profits due to the new competition.

Today, avocados from Mexico are allowed in all 50 states, because USDA inspectors in Michoacán (where 90% of Hass avocados from Mexico are grown), have cut open and inspected millions of fruit in Uruapan, and found no problems. Imports from Mexico in the 2005–2006 season exceeded 130,000 tonnes.

In 2009, Peru joined Chile and Mexico as an exporter of avocados to the US.

Avocados once were more expensive in the US than in most other countries, because those consumed in the US were grown almost exclusively in California and Florida, where land, labor and water are expensive. The avocado tree requires frequent, deep watering to bear optimal amounts of fruit, particularly in spring, summer, and fall; and due to the increased costs for water in Southern California versus those of prior decades, it is now a costly crop to grow. California produces about 90% of the United States' avocado crop.

Internationally, avocado exports are dominated by Mexico.