Mexican avocado imports have grown exponentially in recent years and, according to a study by the University of Texas A&M, the US economy has benefitted from that in a number of ways.
According to a statement, this is partly a result of the growth in the interest of Americans in avocados, which is due to several reasons, such as the fruit's year-round availability (thanks to Mexico), or the promotion of the fruit's health benefits, among others.
Based on the analysis of data from 2017, Dr Gary W. Williams and Dr Dan Hanselka, researchers from the University of Texas A&M, released updated information on the economic benefits for the US of importing 865 thousand tonnes of avocados from Mexico.
- The importation of avocados from Mexico to the US added a total of 5 thousand 500 million dollars to the total value of the US economy in 2017.
- Of that amount, 3 thousand 400 million correspond to the value added to the US Gross Domestic Product (GDP) by the economic activities carried out with avocados once they have crossed the border.
- Another important economic impact that the study shows is that 28 thousand 251 jobs were created, which represents 1 thousand 900 million dollars in income for US workers.
- Furthermore, the value chain paid 932 million dollars in taxes to the US government.
- The study also shows that the import value of Mexican avocados increased by 135 percent between 2012 and 2017, while their contribution to US production increased by more than 200 percent.
Based on these data, it is clear that any trade policy or other measures to reduce the level of avocado imports would have a substantial and lasting negative impact on the US economy.
The methodology used in this study is known as "Analysis of economic contribution" and is based on the idea that a dollar spent in a region or country stimulates the other country's economy, as that money ends up circulating through it.
