Relative trade balance

This indicator measures the relationship between the trade balance of a product and the total trade of the same product for a country in the world market or in a specific market. It is calculated as A= (X-M)/(X+M), if the index approaches 1, the importance of exports in relation to imports will be greater.

Tradability

If the value obtained is close to -1, they can be important recipients of the products since they are countries totally dependent on imports. Countries with indices close to 0 indicate capacity close to self-sufficiency. When the indicator is greater than zero, the sector is considered an exporter, and is a competitive sector within the country. It is calculated from T= (X-M)/(P+M-X).

Degree of export openness

This indicator shows how good exporters they are, excluding apparent consumption. With an index close to 0, one is less competitive, since a large part of its production is oriented to the domestic market, it establishes the export vocation of the country and its ability to build permanent advantages, it is calculated as: EO= X/(P + M-X).

Degree of import penetration

It shows the ratio of a country’s imports to its apparent consumption. The higher the index, the greater the purchasing power, and therefore that country is said to be less competitive, since it is not able to produce enough to supply its domestic market. It is calculated as: IP= M/(P+M-X).

Exports, imports, trade balance and production of Mexico

Figure 1 shows that imports are not significant with respect to exports and therefore the trade surplus is almost equal to exports; on average imports, with respect to exports, only represent 0.2%. Exports in total grew by 1 425%, imports had zero growth.

Figure 1 Behavior of exports, imports and trade balance of avocado in Mexico 2001-2018 (t). Prepared with data from ^{TRADEMAP (2021)}. 

Figure 2 shows the production at the national level, which has increased, the production was 940 229 t in 2001 and 1831 538 t in 2018. The increase in production may be due to the creation of new varieties that are more efficient and resistant to pests and diseases, especially Michoacán and Morelos.

Figure 2 Behavior of avocado production in Mexico from 2001-2018 (t). Prepared with data from SIAP. 

Exports, imports, trade balance and production of the EU

Figure 3 shows that net exports are negative, on average imports, with respect to exports, represent 222.7%, only in 2011 imports did not exceed 200% of exports. Exports grew 385%. Imports grew by 405%. The net trade balance deficit increased by 426%.

Figure 3 Behavior of exports, imports and trade balance of avocado of the EU 2001-2018 (t). Prepared with data from ^{TRADEMAP (2021)}. 

The production, represented in Figure 4, grew, in 2001 the production was 79 093 t and in 2018 it was 90 929 t. The increase can be explained by the popularization of the product, it is an emerging market that has generated incentives within the EU for the production of products of high local demand even though they are not traditionally grown in the region.

Figure 4 Behavior of avocado production in the EU from 2001-2018 (t). Prepared with data from ^EUROSTAT. 

Proportion of Mexican avocado exports in EU imports

Figure 5 shows the proportion of Mexican exports in EU imports, they represented 6.9% in 2001 and 12.7% in 2003, the year with the highest proportion, in 2004 there was a fall due to the high price, it was 1462.61 dollars per ton, slightly higher than the price registered in the market.

Figure 5 Proportion of Mexican exports in total EU avocado imports from 2001 to 2018. Prepared with data from TRADEMAP. 

Relative trade balance index

In Figure 6, the index of the EU is negative, which shows that it is a net importer and demonstrates the potential of the EU to purchase avocado, for Mexico, the indicator shows a competitive advantage because the value is positive. The indicator demonstrates that the EU has no competitive advantage, the average relative trade balance was -0.37.

Figure 6 Relative trade balance index of avocado for Mexico and the EU from 2001 to 2018. Prepared with data from TRADEMAP, FAOSTAT and ^{SIAP (2021)}. 

Tradability index

In Figure 7, regarding the EU, an average tradability index of -0.68 was found, the indicator indicates that the region is not self-sufficient and that it requires imports to meet domestic demand. Mexico shows an increasing competitiveness, in the period the average indicator was 0.5, it shows the production and trade of avocado as a competitive activity.

Figure 7 Tradability index of avocado for Mexico and the EU from 2001 to 2018. Prepared with data from TRADEMAP, FAOSTAT and ^{SIAP (2021)}. 

Index of degree of export openness

The index is represented in Figure 8, for the EU, it evidences that the region is successful in the commercial aspect, it also has relative advantages in trade, production does not satisfy the domestic market and they must promote production. For Mexico, it shows that it has relative advantages in production, it should be considered as a strategic product for the development of the sector.

Figure 8 Index of degree of export openness of avocado for Mexico and the EU from 2001 to 2018. Prepared with data from TRADEMAP, FAOSTAT and ^{SIAP (2021)}. 

Index of degree of import penetration

In Figure 9, it is observed that values close to zero were obtained for Mexico, it means that the productive sector is competitive; imports are small with respect to exports, they tend to be 0. For the EU, the values were greater than 1, which means that the sector is not competitive, imports are large with respect to exports.

Figure 9 Index of degree of penetration of avocado imports for Mexico and the EU 2001-2018. Prepared with data from TRADEMAP, FAOSTAT and ^{SIAP (2021)}. 

Conclusions

Mexican exports had an increasing behavior, imports had a slightly higher growth, the trade balance grew, which reflects the competitiveness of the Mexican avocado. Production is growing, the introduction of new technologies and efficient varieties have made it possible to increase the proportion of harvested area with respect to the planted area. In the case of the EU, imports are many with respect to exports and production, imports with respect to exports represent double, avocado exports had an increasing behavior, the trade deficit increased. Production in the EU increased, the sector is not competitive.

The relative trade balance in the case of Mexico shows that it is a competitive exporter. For the EU, imports have the greatest importance, which shows that the region is a net importer and demonstrates the potential for purchase. For Mexico, the tradability index characterizes the country with an export vocation and competitive at the domestic level. In the case of the EU, it determines that the region is an importer, as a producer it is not competitive in the domestic market.

The index of degree of export openness, for Mexico, shows that it has an export vocation and permanent comparative advantages in the production and trade of avocado. In the case of the EU, it determines that it has covered domestic demand, exports are not production surpluses, but the EU is a re-exporter, it is successful in the commercial aspect but not in production. The degree of penetration of imports, in the case of Mexico, values were almost 0, it is concluded that the sector is highly competitive. In the case of the EU, the values obtained were greater than one, it is concluded that the avocado production sector is not competitive.