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BUSINESS Monday 3 June 2019
A25

In this July 18, 2018, file photo, United Airlines commercial jets
sit at a gate at Terminal C of Newark Liberty International Airport
in Newark, N.J.
Associated Press
Airlines downgrade In this Aug. 9, 2016 file photo, an avocado vendor talks on his cellphone at a market in Mexico
City. Summary: The potential Trump tariffs are expected to hit U.S. avocado lovers more than
2019 forecast amid Mexican producers. Associated Press

trade spats, fuel hike Mexican avocado growers expect

BY FRANK JORDANS website. The 737 Max was U.S. consumers to bear tariffs
Associated Press grounded after the crash
BERLIN (AP) — The Inter- of an Ethiopian Airlines jet By ARTURO PEREZ and AMY fruit the nickname “green market,” said Humberto
national Air Transport As- in mid-March. A Lion Air GUTHRIE gold” in Mexico, the world’s Solorzano, a third-gener-
sociation is lowering its Max crashed in October Associated Press top producer. ation avocado producer
2019 profit forecast for the off the Indonesian coast. In URUAPAN, Mexico (AP) The U.S. is the top export also in Michoacan, where
airline industry amid rising all, 346 people died. — The baby avocados in market for Mexican avo- 80% of Mexican avocados
fuel prices and weakening “The consequences of Enrique Bautista’s vast or- cados, according to USDA are grown.
world trade. these tragedies, however, chard in western Mexico data, consuming more A weakening peso will
The Montreal-based IATA go far beyond the techni- will grow to maturity, even- than 74% of total exports. shield U.S. consumers from
said airlines are expected cal,” he said. “Trust in the tually, and be shipped out Japan absorbs at least 6% higher avocado prices in
to earn $28 billion this year, certification system has of Mexico. and Canada another 7% of the near-term, Solorzano
down from the $35.5 billion been damaged — among What remains to be seen is the Mexican crop. figured, but eventually the
it had predicted in Decem- regulators, between regu- how many of those green “Fortunately, the avocado cost of any tariffs would be
ber. “Margins are being lators and the industry and gems will reach consumers is a fruit that’s in demand absorbed throughout the
squeezed by rising costs with the flying public.” in the United States if Presi- more every day around supply chain, landing most-
right across the board, in- De Juniac called for con- dent Donald Trump makes the world, that’s consumed ly on U.S. consumers. The
cluding labor, fuel, and in- fidence to be restored in good on his promise to slap in many other countries,” peso plunged more than
frastructure,” the industry the way that civil aircrafts duties on Mexican exports said Bautista, who gave 3% against the dollar on Fri-
body said in a statement are certified by aviation should the country fail to The Associated Press a tour day in the wake of Trump’s
Sunday at its annual meet- authorities and for better stem the tide of immigrants of his orchard in Uruapan in tweet promising tariffs on
ing in Seoul. coordination among regu- trying to reach the U.S. Michoacan state on Satur- all Mexican goods.
It said competition among lators and industry when The potential Trump tariffs day. On Friday, Mexican Presi-
airlines remains stiff and accidents occur and swift would hit U.S. avocado lov- His avocados are shipped dent Andrés Manuel López
“weakening of global action needs to be taken. ers more than Mexican pro- entirely to the U.S. Obrador dispatched his
trade is likely to continue “People were confused as ducers, Bautista said. De- Mexican orchards yield 11 foreign secretary to Wash-
as the U.S.-China trade war grounding decisions rolled mand north of the border avocados for every one ington to try to negotiate
intensifies,” primarily affect- out in some markets while for Mexican avocados has picked in California. Mex- a truce and point out what
ing the cargo business, al- it was business as usual in proven very static: even ico also produces year- Mexico has done to stem
though passenger traffic others,” he told the meet- when prices expand four- round, versus California’s the flow of migrants.
could also be hit if tensions ing. “Put yourselves in the fold during the year, the usual eight-month season. It has stepped up raids on
rise. Addressing concerns shoes of travelers and I am fruit is still scooped up by Production in California migrant caravans traveling
over two deadly passen- sure anyone would expect U.S. devotees of avocado typically covers U.S. de- through the southern states
ger plane crashes involving better.” IATA members at toast and guacamole. mand for avocados this of Chiapas and Oaxaca
Boeing’s 737 Max model, the meeting also backed a Producers in Mexico be- time of year. this year.
IATA’s director-general said plan that will cap net emis- lieve a 5% — or even 25% But the 2019 crop in Califor- It has deported thousands
the disasters “have put our sions of the greenhouse — U.S. tariff on avocados nia was weak, with some of migrants and frustrated
reputation in the spotlight.” gas carbon dioxide from in- will do little to dampen their growers reporting total thousands more who wait
“Investigations will ultimate- ternational aviation at 2020 sales. failures due to record high endlessly for permits that
ly reveal the cause. And a levels. Airlines will have “I think the bigger risk is for temperatures last summer would allow them to travel
remedy will be found,” Al- to spend money on car- U.S. consumers” having that destroyed much of the legally through Mexico.
exandre de Juniac said, bon reduction measures to pay higher prices, said young fruit before maturity. Trump’s tariff threat has also
according to a transcript elsewhere to offset excess Bautista, 69, a second-gen- The California avocado received pushback from
of his speech on IATA’s emissions.q eration avocado grower season also started late, so U.S. businesses that rely on
whose father was an early Mexican producers have Mexican production.
exporter of the fruit that has shipped much of their pro- Solorzano said exporters
become a staple in the di- duce north since April in are looking for assurance
ets of millions of Americans. what is considered low sea- despite the avocado’s
The popularity of avocados son for Mexican avocados. privileged status as a “su-
has won the spreadable “We are living in a sellers’ per-food.”q