Mexican Avocados and Chinese Shoes

Wow! The example in this article from A World Connected is very similar to my example in the Free Trade/Fair Trade post. Peter Mork, an economist, who is writing a book about how economics effects people on a day-to-day basis, writes a charming and real account of his experience in Uruapan, Mexico, where Avocados are the primary crop and economy. He calls attention to the limits the U.S. used to have on Mexican Avocados and how that hurt the people of Uruapan. Today, Mexican Avocado trade in the U.S. is less restricted (they can now be sold in 47 states year-round).

This quote sums it up quite nicely:

"...couldn'’t all this theory be summed up into one simple question: Where was the justice in the fact that I was allowed to buy an avocado from someone named Richard in Fallbrook, California, but not from Ricardo simply because he lived in Uruapan, Mexico? Should the random chance of being born on the opposite side of a border restrict our association in that way?"

"I, living in San Diego, want guacamole and Ricardo, living in Uruapan, wants to sell me his avocados. Why should anyone have the power to stop this peaceful exchange?"

What I appreciate about the article, and Mr. Mork highlights it, is that the Mexicans are dealing with their own protectionist issues with China, specifically concerning shoes. They ban Chinese shoes in order to protect their own shoe industry. Obviously this is quite ironic, as the people of Uruapan try to gain entry to the markets of the U.S., the people of China are shut out of Mexico.

Mr. Mork talks about conversations he has with some of the locals in seeing if they understand the irony in their situation:

"When I explained that I wanted to write about how economics affects real people and gave the example of how avocados from Uruapan cannot be sold in my home state of California, not only did the confused looks leave their faces but it generally changed into one of enthusiasm. Residents from Sonora to Chiapas would say 'That'’s a great thing to write about. Why aren'’t Mexicans allowed to sell their avocados in California?'” It was easy for many to relate with growers in Michoacan and see the injustice in our laws.

Alas, I did not receive a similar reaction when talking about Chinese shoes. Even after pointing out the similarities between California growers lobbying politicians to ban the import of Mexican avocados and shoe makers in Leon lobbying politicians to ban the import of Chinese shoes, many were not convinced. '“It'’s different though,'” I would hear people say, '“We need those laws. The Chinese can make everything so cheap.'"

Mr. Mork rightfully points out that if free trade is allowed across these borders (U.S., China, and Mexico, and every other border for that matter) then people will be better off. Goods will be produced cheaper and therefore cost less. This allows consumers to spend less and use the excess money to invest in their own economy. The slow and inefficient industries will wither and die and the stronger, specialized industries will grow. As Mr. Mork alludes to, it is a "win win" situation for everybody.