U.S.-Mexico Agricultural Trade Relationship

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U.S.-Mexico Agricultural Trade Relationship
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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.

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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.

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U.S. Ag Exports to Mexico 2003
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U.S. Ag Exports to Mexico by Sector 2003
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Mexican Ag Exports to U.S. Under NAFTA

• Mexicos agricultural exports to the U.S. reached
  a record 6.3 billion in 2003.
• About 50 percent of Mexicos agricultural exports
  are from the fruits and vegetable sectors.

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

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Late 2002

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

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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
• Mexicos national agricultural debate

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April 2003 CCA Held in Mexico City

• US ISSUES
• Stone Fruit
• Poultry
• Dry Beans
• Mexicos 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

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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

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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

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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