Dive Brief:
- Produce companies at the Fresh Produce Association of America’s 2017 Spring Policy Summit said they weren’t worried that new policies by the Trump administration would affect relationships with growers in Mexico, according to The Packer.
- The cross-border business between the U.S. and Mexico represents $1.5 million each minute. Unsurprisingly, Mexico’s largest trading partner is its northern neighbor.
- Lance Jungmeyer, the FPAA’s president, said that the Greater Nogales and Santa Cruz County Port Authority are adding a cold storage inspection area to bring about more imports of temperature-sensitive produce, including avocados and berries.
Dive Insight:
President Trump continues to advocate for a wall separating the U.S. and Mexico, and his remarks about immigrants have not been taken well by many. Add his stance on the North American Free Trade Agreement and trade regulations, and it’s easy to see why people might be worried about the food being imported into our country.
The FPAA made it clear that they’re not worried about the produce industry, despite the fact that a large number of fruits and vegetables are imported from our neighboring country. In 2016, the U.S. imported more than $5 billion worth of vegetables and $4.5 billion worth of fruits from Mexico.
The Mexican government has said it is open to discussing modernizing NAFTA to strengthen the bond between the countries, but it’s uncertain how those discussions will go. Continued back and forth jabbing could lead to a more strained relationship down the line.
And if the rumored border adjustment tax or punitive immigration policies come into effect, analysts aren’t sure that the produce industry will be as confident in a continued strong relationship.