(b) falsely report that the receiver required a discount due to damaged product; or (c) sell

consigned product at a low price to parties in which the 'broker' has a financial interest. Not

surprisingly, distrust of 'brokers' is widespread, as are the stories of cheating. Still, it should

-be recognized that, overall, 'brokers' have and continue to perform a positive service for their

clients. However, as legal barriers at the borders are reduced and as exporters become more

familiar with the U.S. market, the role of 'brokers' is likely to change.

 As is discussed elsewhere, Mexican transportation equipment is not allowed in the United

 States outside the border area. Accordingly even an exporter which arranges the sale to the final

 U.S. customer must have the product transferred to a U.S. vehicle at the border. In addition,

 a variety of paperwork is required for the product to enter the country, which would involve a

 customs broker.

 While the bananas, tomatoes, and winter vegetables that are exported are usually grown

on large farms, some export products are more typically grown on smaller operations. Melons

and pineapple are two examples. In these instances, the coyotes can serve as the intermediary

between the grower and the border broker. Of course, this creates an even greater information

differential and more opportunity for misunderstandings or even fraud.

 With NAFTA and gradual relaxation of the transportation limitations, the need for

facilities at the border will decrease. Many of the 'brokers' will be located in the growing areas

instead of at the border. Undoubtedly there will always be the need for some facilities near the

border, if only to break and mix loads. However, these facilities might be more logically

located in a place like Tucson or Phoenix than Nogales, AZ for the Sinaloa winter vegetables

or in San Antonio rather than Laredo for the perishables coming up through Texas.