LOGISTICS AND PERISHABLES TRADE
 BETWEEN THE UNITED STATES
 AND MEXICO

 by
 Richard Beilock, Roger Clemmons, James Dunn, and Barry Prentice

 INTRODUCTION


 The liberalization of Mexico's economy since the mid-1980's, capped by the enactment

of the North American Free Trade Agreement (NAFTA), has established a more conducive legal

framework for trade between the member countries. The purpose of this report is to examine

the logistical system of Mexico and its interface with the U.S. in order to assess the ability of

that system to support expanded trade in perishables. Perishables are defined as goods requiring

controlled temperatures, normally refrigeration or freezing. Perishables include chilled and

frozen fruits and vegetables, juices and juice concentrates, meats, dairy products, and highly

processed foods, such as frozen pizzas and dinners. The focus on logistics is justified both

because of the special requirements associated with transporting and storing perishables and the

current importance of and potentials for trade of these commodities. While canned and dried

products do not fit under this definition, they are of some interest as canning and drying are

means of transforming perishables to reduce demands on the logistical system and home storage.

 The report is organized into four parts. In the introduction, relevant background statistics

regarding Mexico are reviewed to familiarize the reader with the overall problems and prospects

for perishables trade with Mexico. The second section describes the marketing system for

perishables both within Mexico and with regard to U.S.-Mexico trade. The third section focuses