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Business

Mexico's avocado industry could rot if NAFTA goes

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Business

Mexico's avocado industry could rot if NAFTA goes

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COMING UP:Mexico's avocado industry could rot if NAFTA goes

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Transcript

00:00:00
>> The North American Free Trade Agreement, or NAFTA, means that most of Mexico's exports to the United States and Canada are not taxed. If it were ripped up, however, there would be Mexican companies across a lot of different sectors that could be in trouble. I'm Christine Murray, reporting for Reuters here in Mexico City.
00:00:20
NAFTA benefits a lot of different sectors in Mexico, such as avocados and other fruits and vegetables. But it's really transformed the country into a manufacturing powerhouse, especially in the auto sector, where there's been a lot of investment in recent years. But the effect of ripping up NAFTA could mean that prices rise for consumers, north of the border.
00:00:42
We talked to Rosendo Castillo, a director in a leather company called WYNY, one of a swath of small and medium-size businesses that mushroomed out of the NAFTA deal. They export goods to retailers like Hugo Boss and Zara, but without NAFTA, Castillo said that it would really jeopardize the business.
00:01:00
For Mexico's avocado farmers who've seen a boom in US consumption in recent years, no NAFTA would be bad news, and they would have to start looking to other countries and other export markets for their produce. So at some point, Mexican businesses like the avocado farmers are gonna have to decide when the US looks too complicated, and when to turn their attention to other markets.