Mexican demand for U.S. apples remains strong - The Packer

Mexican demand for U.S. apples remains strong

08/27/2008 12:00:00 AM
Tom Karst

Beyond the light brown apple moth, Jones said there may be resistance to U.S. imports because of the Food and Drug Administration’s scrutiny of tomatoes and peppers.

Jones said there is increasing talk in Mexico about reciprocity or “mirror policies” with the U.S.

In general, U.S. exporters will face nontariff barriers in the form of limited ports of entry, phytosanitary restrictions, packaging requirements and legal battles related to Mexico’s long-running anti-dumping case.

The Mexican peso was trading at 10.13 to $1 in mid-August, and Jones said the exchange rate should remain favorable for U.S. exports to Mexico during the next six months.

Broader issues in Mexico

Economic priorities in Mexico include facilitating investment in the oil sector and the pursuit of reforms in telecommunications, labor and electricity. Mexico’s economy, aided by the oil sector, is expected to grow by 2.3% this year, he said.

In terms of social issues, Jones said money sent to Mexico from migrant workers in the U.S. dipped 2.2% from January to June this year compared with a year ago because of the slower U.S. economy.

“They have been affected by the loss of jobs up here,” Jones said. “I’m starting to see employees that used to work for me coming back home again, saying they can’t find a job (in the U.S.),” he said.

Meanwhile, he said drug-related crime in Mexico is continuing to be disruptive to foreign investment and public safety.

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