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The Benefits of NAFTA for U.S. Agriculture

The Benefits of NAFTA for U.S. Agriculture. A. Ellen Terpstra, Administrator Foreign Agricultural Service U.S. Department of Agriculture April 20, 2004. U.S. Agriculture is Export Oriented. 1/3 of U.S. crop acreage is exported Exports reached $59.5 billion in 2003

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The Benefits of NAFTA for U.S. Agriculture

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  1. The Benefits of NAFTA forU.S. Agriculture A. Ellen Terpstra, Administrator Foreign Agricultural Service U.S. Department of Agriculture April 20, 2004

  2. U.S. Agriculture is Export Oriented • 1/3 of U.S. crop acreage is exported • Exports reached $59.5 billion in 2003 • 28 percent of farm cash receipts from exports

  3. Importance of Exports • America’s farmers and ranchers export: • 49% of U.S. wheat • 47% of U.S. rice • 37% of U.S. soybeans • 65% of U.S. almonds • 43% of U.S. walnuts

  4. U.S.Agricultural Exports Support Jobs • Every $1 billion in exports creates 15,000 U.S. jobs • U.S. Ag Exports = 885,000 jobs • Exports support one-third of all jobs in rural communities

  5. Benefits of NAFTA • Ag. exports under NAFTA = 258,000 U.S. jobs • Average annual growth = $800 million • Dismantling trade barriers = market integration • Canada is # 1 U.S. export market • Mexico is # 3 U.S. export market • U.S. is #1 export market for both Canada and Mexico • Integration fueling investment • $10.7 billion invested by U.S. in Canada and Mexico’s food and agriculture sector

  6. NAFTA Has Accounted For 59% of U.S. Ag Export Growth

  7. Growth in U.S. Agricultural Exports Under NAFTA Under NAFTA, exports of U.S. food and agricultural products reached a record $17.2 billion in 2003

  8. U.S. Ag Exports to Canada Under NAFTA • Exports to Canada have increased 75%, reaching $9.3 billion in 2003 • Canada is our largest agricultural market

  9. U.S. Ag Exports To Canada by Sector • Benefits of NAFTA are widely distributed across U.S. agriculture. • 2003 exports were record for: • Vegetables • Meats • Soybean meal • Bulk commodities • Snack foods

  10. Top U.S. Ag Exports to Canada 2003

  11. U.S. Pork Exports to Canada Since 1993 • Pork exports grew from $37 million in 1993 to $211 million in 2003

  12. U.S. Corn Exports to Canada Since 1993 • Corn exports increased substantially from $81 million in 1993 to $351 million in 2003

  13. U.S. Poultry Exports to Canada Since 1993 • In 2003, Canada was the number two export market for U.S. poultry, a 77% gain over pre-NAFTA levels • Total exports rose to $268 million, up from $164 million in 1993

  14. U.S. Dairy Exports to Canada Since 1993 • Despite Canadian high tariff rates on over-quota dairy exports, U.S. dairy exports have more than tripled since NAFTA • Exports rose from $73 million in 1993 to $225 million in 2003

  15. U.S. Fresh Fruits Exports to Canada Since 1993 • Canadian retail grocery stores devote more space to fresh produce than any other food sector • NAFTA border facilitation measures and modern transportation provide Canadian fresh fruit buyers with prompt delivery • Fresh fruit exports, led by strawberries, grapes, oranges and apples, reached $820 million in 2003, up from $609 in 1993

  16. U.S. Fresh Vegetables Exports to Canada Since 1993 • Exports reached $1.0 billion in 2003, making Canada the top export market for U.S. fresh vegetable exporters

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

  18. U.S. Ag Exports To Mexico by Sector • Benefits of NAFTA are widely distributed across U.S. agriculture • 2003 exports were records for: • Intermediate products • Processed fruits and vegetables • Red meats • Wheat • Rice • Soybeans

  19. Top U.S. Ag Exports to Mexico 2003

  20. U.S. Pork Exports to Mexico Since 1993 • U.S. exports to have increased to a record $285 million

  21. U.S. Poultry Exports to Mexico Since 1993 • Mexico is the third largest export market for U.S. poultry • Mexico imported a record $258 million in U.S. poultry in 2003

  22. U.S. Beef Exports to Mexico Since 1993 • Mexico is the second largest market for U.S. exports of beef and beef offals • U.S. beef exports increased to $877 million in 2003

  23. U.S. Soybean Exports to Mexico Since 1993 • In 2003, U.S. soybean exports reached a record $980 million

  24. U.S. Rice Exports to Mexico Since 1993 • The U.S. is the dominant supplier, shipping $140 million in 2003

  25. U.S.Wheat Exports to Mexico Since 1993 • The U.S. exported a record $393 million worth of wheat in 2003

  26. U.S. Corn Exports to Mexico Since 1993 • The U.S. exported $653 million of corn in 2002 • White corn represents approx. 20% of U.S. corn exports to Mexico

  27. The Benefits of NAFTA for U.S. Agriculture A. Ellen Terpstra, Administrator Foreign Agricultural Service U.S. Department of Agriculture April 20, 2004

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