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U.S.-Mexico Agricultural Trade Relationship

U.S.-Mexico Agricultural Trade Relationship. NAFTA Has Benefited Both Countries’ Ag Sectors. NAFTA trading relationship continues to provide benefits and opportunities for U.S. producers.

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U.S.-Mexico Agricultural Trade Relationship

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  1. U.S.-Mexico Agricultural Trade Relationship

  2. NAFTA Has Benefited Both Countries’ Ag Sectors • NAFTA trading relationship continues to provide benefits and opportunities for U.S. producers. • Two-way agricultural trade between the United States and Mexico increased more than 125 percent since the NAFTA went into effect, reaching $14.2 billion in 2003 compared to $6.3 billion in 1993.

  3. U.S. Ag Exports to Mexico Under NAFTA • U.S. ag exports to Mexico have doubled under NAFTA, reaching a record $7.9 billion in 2003. • Mexico is our third largest agricultural market.

  4. U.S. Ag Exports to Mexico 2003

  5. U.S. Ag Exports to Mexico by Sector 2003

  6. Mexican Ag Exports to U.S. Under NAFTA • Mexico’s agricultural exports to the U.S. reached a record $6.3 billion in 2003. • About 50 percent of Mexico’s agricultural exports are from the fruits and vegetable sectors.

  7. Mexican Ag Exports to U.S. 2003

  8. Mexican Ag Exports to U.S. by Sector in 2003

  9. Timeline Influencing CCA Discussions • Late 2002 – Pressure on NAFTA due to pending tariff elimination • Early 2003 – Trade relationship deteriorates as issues build to boiling point • April 2003 – CCA held in Mexico City • Summer/Fall 2003 – Smoother sailing as issues are resolved and trade flows • Late 2003/Early 2004 – BSE and AI

  10. Late 2002 • Impending elimination of most NAFTA tariffs • U.S. Farm Bill • Agricultural Armor Program • Mexican Congressional Actions • FDA Actions on Mexican Cantaloupes

  11. Early 2003 • Blockage of U.S. Dry Beans • Poultry safeguard negotiations • Investigations into anti-dumping and safeguard action on beef and pork • Impasse on stone fruit negotiations • Apple antidumping measures • Mexico’s national agricultural debate

  12. US ISSUES Stone Fruit Poultry Dry Beans Mexico’s meat inspection procedures Pork Beef Rice Apples Plywood MEXICAN ISSUES Avocados Destination grading for grains US Bio-terrorism legislation Cantaloupes Market Access Country of Origin Labeling April 2003 – CCA Held in Mexico City

  13. Summer/Fall 2003 • Trade issues begin to be resolved • Examples • Dry bean shipments resume • Poultry Safeguard Agreement signed • PRA on avocados released • COOL regulations postponed • Collaboration on BTA

  14. 2003 - Areas of Collaboration • US-Mexico Consultative Committee on Agriculture (CCA) • April 23rd Meeting • August 6th Meeting • Cancun • Partnership for Prosperity • Science and Technology Conference • MOU with SEMARNAT • Pending MOU on Food and Nutrition

  15. Late 2003/Early 2004 • BSE and North American Harmonization • High Path Avian Influenza in Texas • FDA Actions on green onions, cantaloupes • Technical Assistance on beef and pork • Dry beans and corn? • US WTO cases • Beef, rice, HFCS, foreign trade law • SPS at the forefront

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