Avocado Trade Crisis: US-Mexico Tensions and Cartel Influence

TL;DR

The recent detention of U.S. avocado inspectors in Michoacán, Mexico has highlighted the dangerous intertwining of avocado trade and cartel activities, leading to a temporary halt of avocado imports to the U.S. This incident has sparked discussions on changing inspection processes and addressing illegal avocado production, amid ongoing concerns about violence, corruption, and deforestation linked to the lucrative industry.

The avocado industry, often dubbed as 'green gold,' has recently been at the center of a significant international dispute involving the U.S. and Mexico. This conflict was triggered by the assault and detention of U.S. avocado inspectors in Michoacán, a major avocado-producing state that has also been a hotspot for cartel activities. The incident led to a temporary suspension of avocado imports from Michoacán to the U.S., causing a sharp increase in prices and highlighting the broader security and environmental challenges facing the industry.

The Incident and Its Impact

In June 2024, two Mexican citizens working for the USDA's Animal and Plant Health Inspection Service were detained at a police roadblock in Michoacán, leading to a suspension of avocado imports from the region by the U.S. This halt affected the avocado market significantly, with prices in the U.S. increasing by 40 percent. The situation was resolved only after diplomats and agricultural officials from both countries negotiated new security guidelines, allowing trade to resume at normal levels by early July.

Cartel Influence and Corruption

The expansion of the avocado market in Michoacán has been deeply intertwined with local cartels and corrupt authorities. Researchers have noted that criminal groups engage in illegal logging and land clearing for avocado plantations, and local police forces often act as paid security for producers. This complex web of interests has led to a situation where violence and extortion are common, complicating efforts to manage and regulate the industry effectively.

Proposed Changes and Future Implications

In response to ongoing challenges, there have been calls to change the bilateral agreement that governs avocado inspections. Mexican officials have proposed that Mexico take over the inspection responsibilities, a move that has been met with skepticism from U.S. stakeholders concerned about the integrity of pest-free certifications. Additionally, both governments are discussing policies to block exports of avocados grown on illegally cleared lands, though legal mechanisms for such policies are still under debate.

The recent crisis in the avocado trade between the U.S. and Mexico underscores the complex issues at the intersection of international trade, security, and environmental sustainability. As both nations continue to grapple with these challenges, the future of this lucrative industry hangs in the balance, with significant implications for economic and physical security on both sides of the border.

Notable Quotes

"This is the core of the mafia-style relationships that exist in Michoacán around avocado production." - Romain Le Cour

"US farmers will not be protected under such a program, one intended and designed specifically to protect US farmers' economic interests." - Ken Melban

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