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MEXICO AGRI-FOOD

Jorge Alejandro DelaVega LozanoAgri-Food / Agro-Alimentaria

j.delavegal@gmail.comhttp://jdelavegal.weebly.comCel. 52 1 (55) 4006 0440Tel. 52 (55) 5562 3588Mexico City

Mexico is the United States second largest agricultural trading partner with bilateral trade equal to over$20 billion. Mexico is the top export destination for beef, rice, soybean meal, sugars and sweeteners,apples and dry edible bean exports. It is the second export market for horticultural products, and thirdlargest for pork, poultry and eggs. Agricultural trade between the United States and Mexico has beencompletely liberalized under the North American Free Trade Agreement, signed in 1994 and fully

implemented in January 2008. More than half the value of agricultural trade became duty free when theagreement went into effect, with the remaining tariff reductions implemented over the 1994-2008period. NAFTA also provides for strict rules of origin to ensure that maximum benefits accrue only tothose items produced in North America.

Top United States Exports to Mexico - Year 2008:

• Coarse Grains 2.5 Billion Dollars.• Red Meat and Fish (Chilled & Frozen) 1.84 Billion Dollars.• Soy Beans 1.7 Billion Dollars.• Wheat 1.0 Billion Dollars.• Dairy Products: 1.0 Billion Dollars.

Mexico Data:

• Population in Mexico – Year 2008: 110 million• GDP per capita: $14,400.00 (2008 est)• Agriculture: 3.7 percent of GDP (2008 est.)• Major Agricultural Exports from Mexico: fruits, vegetables, coffee, cotton, pork.• Major U.S. Agricultural Exports to Mexico: beef, rice, soybean meal, sugars and sweeteners,

apples and dry edible beans.

Mexico Agricultural Economy and Policy Report - Year 2009

Mexico is the number two export destination for U.S. agricultural exports. Like our other NAFTApartner, we share a long border with the country and an increasingly integrated market. Full NAFTAimplementation took place as scheduled on January 1, 2008, when the Government of Mexicocomplied with its NAFTA commitments to remove all import tariffs and administrative controls oncorn, dry beans, milk powder, and sugar.

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General Trade

The United States is Mexico’s most important trading partner, by far. No other country even comesclose, although the share of trade with NAFTA countries has been losing ground to non-NAFTApartners. Mexico is the United States’ third most important trading partner. According to Mexicanstatistics, total two-way trade in 2007 was $364 billion; U.S. trade numbers put this figure slightly

higher at $367 billion. Imports - Mexico imported $283 billion in 2007, with $141 billion from theUnited States. Electrical machinery, machinery and vehicles and parts were Mexico’s top three imports.Exports - Mexico exported $272 billion in 2007, with $223 billion in exports to the UnitedStates. The top exports to the United States were electric machinery, vehicles and parts,machinery, and petroleum.

Agricultural Trade

U.S. agricultural and food exports to Mexico have been climbing at an annual rate of almost 10 percentsince 2002. Total agricultural, fishery, and forestry exports for 2007 were valued at $13.3 billion,surpassing total 2006 exports of $11.5 billion. Similarly, imports from Mexico in 2006 were $11billion, passing the previous record level of $10.2 billion in 2006. Two-way trade of agricultural,forestry and fisheries products crossed the $20 billion threshold in 2006 and has continued the healthygrowth pattern of the NAFTA period. While imports and exports had been growing at a relativelyeven pace over the last several years, the high value of U.S. export commodities during thelast year gave the United States the edge in export growth in 2007. Our most important exports in termsof total sales have been coarse grains, red meats, and soybeans representing approximately 30 percentof total exports to Mexico. Cotton, wheat, poultry and dairy products are also strongly represented inthe trade mix. Fresh vegetables and fruit account for approximately 40 percent of the value of totalMexican exports to the United States. Other significant Mexican exports include snack foods, liveanimals, beer, and processed fruits and vegetables.

SPS and Regulatory Systems

Food safety is regulated primarily by the Secretariats of Agriculture (SAGARPA), andHealth (SALUD). The Secretariat of Economy also has some input, especially in the areasof labeling and biotechnology, and is the lead agency for Mexico in international fora suchas Codex. While some independent risk assessment is done in country, Mexico refers toand relies heavily on international standards of Codex, the OIE, NAPPO and otherinternationally recognized bodies, including U.S. regulatory agencies, as a basis for manyof their standards; adjusting for local concerns and conditions.

Source:http://www.fas.usda.gov/country/Mexico/Mexico.asphttps://www.cia.gov/library/publications/the-world-factbook/geos/mx.html