The potato-shaped loophole in free trade
Ever since free trade opened up between the US and Mexico in the 1990s, trillions of dollars of goods have been going back and forth between the two countries, from cars to strawberries to MRI machines to underwear. But one major exception has been fresh American potatoes. Today on the show, we tell the trade saga of the American potato. For more than 25 years, there was a place that American potatoes could not go to freely. A place that the entire American potato industry was desperate to access. A vast, untapped market: Mexico. But standing in their way – the Mexican potato lobby and a trade loophole.
This episode was hosted by Erika Beras and Jeff Guo. It was produced by Willa Rubin and edited by Meg Cramer. It was fact-checked by Sierra Juarez. Engineering by Cena Loffredo. Alex Goldmark is Planet Money’s executive producer.
Help support Planet Money and hear our bonus episodes by subscribing to Planet Money+ in Apple Podcasts or at plus.npr.org/planetmoney. Always free at these links: Apple Podcasts, Spotify, the NPR app or anywhere you get podcasts. Find more Planet Money: Facebook / Instagram / TikTok / Our weekly Newsletter. Music: Universal Music Production – “Don’t Cross The Line,” “Play It Smoothly,” and “Prisms.”
Uncovering the Potato-Shaped Loophole
The American potato industry has faced a significant barrier in accessing the Mexican market due to a trade loophole that has persisted for over two decades. Despite the flourishing trade relationship between the US and Mexico, fresh American potatoes have been unable to make their way into Mexican markets, much to the frustration of potato farmers and producers.
The Mexican Potato Lobby’s Influence
One of the key obstacles preventing American potatoes from entering Mexico is the influence of the Mexican potato lobby. This powerful group has lobbied to maintain restrictions on the importation of American potatoes, citing concerns about competition and the protection of domestic potato growers in Mexico. Their efforts have contributed to the persistence of the trade loophole that has kept American potatoes out of Mexican markets.
Challenges and Opportunities for the American Potato Industry
The inability to access the Mexican market has posed significant challenges for the American potato industry, limiting its potential for growth and expansion. With Mexico representing a substantial market for fresh produce, the exclusion of American potatoes has been a missed opportunity for farmers and producers in the US.
The Road to Resolving the Trade Loophole
Efforts are underway to address the trade loophole that has hindered the entry of American potatoes into Mexico. Stakeholders from both countries are engaging in negotiations to find a resolution that balances the interests of domestic potato growers in Mexico with the desire of American farmers to access the Mexican market. The outcome of these discussions could have far-reaching implications for the future of the American potato industry and the broader dynamics of free trade between the US and Mexico.