CONCLUSIONS


 Increased trade between the United States and Mexico appears inevitable for a wide range

of goods, including perishables. The distribution system serving Mexico presents both

problems and opportunities for firms importing or exporting perishables. Among the problems

are:

 Almost complete reliance for overland perishables movements on a trucking
 system plagued with older equipment and congested, poorly maintained roadways.

 A lack of refrigerated storage. This problem is particularly critical with respect
 to public warehousing and ports.

 Inefficient ports and rail systems.

While these problems are severe, improvements are being effected thanks, largely, to reduced

regulatory controls, privatization, and competitive pressures and investments from the U.S. and

other nations. For example, U.S. railroads, motor carriers, and full-service logistics firms are

establishing operations in Mexico, either independent or in partnership with Mexican

counterparts. Indeed, the provision of logistical services and related equipment is a significant

trade opportunity for U.S. firms.

 Opportunities include:

 Improving clearance procedures for trade among the North American nations.

 The existence of excess transport capacity due to freight imbalances. This may
 be of particular advantage for U.S. exporters of perishables.

 The existence of a strata of Mexican firms with modem business practices and
 marketing strategies targeted toward Mexico's upper and middle classes. Such
 firms are well-suited for joint ventures and other cooperative arrangements for
 U.S. firms doing business in Mexico.