Avocados in the U.S. market recently rose in price because there was a ban on importing them from Mexico. This ban, now lifted, was imposed due to a threat made against an American inspector.
Given that Mexico provides a substantial part of the consumption market (80%), this isn’t going to surprise anyone.
In turn, although the ban is now lifted, this is a teachable moment about trade restrictions. Who was suffering from this righteous action? Suffering might be too strong a word for more expensive guacamole, but who was bearing the cost? It was us consumers inside the United States. If we refuse to allow foreigners to sell us their produce, the people who suffer are us. We don’t get that production of foreigners? Well, we have to pay higher prices as a result.
The lesson: All import restrictions are, ultimately, a tax upon us, the prospective consumers. This is true of bans, of tariffs, of quotas, of any rule or regulation that keeps foreign produce away from us. It may be a price we’re willing to pay; it may not be. But it is always us consumers that end up paying the costs.
True, we need people in the U.S. who can inspect the avocado shipments for quality and infestations of things we don’t want to eat. True, we want our inspectors to operate safely without pressure or intimidation. But we shouldn’t forget that import restrictions carry costs for us, not just those desiring to sell their produce to us.
