NAFTA Agricultural Trade NAFTA Agricultural Trade RelationshipsRelationships

By

Patricia Sheikh

Deputy Administrator

International Trade Policy

Foreign Agricultural Service, U.S. Department of Agriculture

NAFTA Has Benefited the U.S. NAFTA Has Benefited the U.S. Ag SectorsAg Sectors

NAFTA markets continue to be a bright spot for U.S. agriculture, as agricultural trade with our NAFTA partners has increased in size and importance.

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

Since NAFTA began in 1994

OTHER41%

NAFTA59%

Growth in U.S. Agricultural Growth in U.S. Agricultural Exports Under NAFTAExports Under NAFTA

U.S. farmers and ranchers have been the beneficiaries of NAFTA’s success, as exports of food and agricultural products from the U.S. to our NAFTA partners reached a record $17.2 billion in 2003; a two-fold increase since the signing of the Agreement in 1993.

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Mexico Canada

U.S. Ag Exports to Mexico U.S. Ag Exports to Mexico Under NAFTAUnder NAFTA

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U.S. ag exports to Mexico have doubled under NAFTA, reaching $7.9 billion in 2003.

Mexico is our third largest agricultural market.

U.S. Ag Exports to Canada U.S. Ag Exports to Canada Under NAFTAUnder NAFTA

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U.S. ag exports to Canada have increased 75% under NAFTA, reaching $9.3 billion in 2003.

Canada is our largest agricultural market.

U.S. Ag Exports To Mexico by U.S. Ag Exports To Mexico by SectorSector

Benefits of NAFTA are widely distributed across U.S. agriculture.

• In 2003 record exports of:• Intermediate products• Processed fruits and

vegetables• Red meats• Wheat• Rice• Soybeans

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U.S. Ag Exports To Canada by U.S. Ag Exports To Canada by SectorSector

Benefits of NAFTA are widely distributed across U.S. agriculture.

• In 2003 record exports of:• Vegetables• Meats• Soybean meal• Bulk commodities• Snack Foods

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Top U.S. Ag Exports to Mexico Top U.S. Ag Exports to Mexico 20032003

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Red Meats

Soybeans

Coarse Grains

Cotton

Wheat

Proc. Fruits and Vegs

Poultry

Dairy Products

Planting Seeds

Top U.S. Ag Exports to Canada Top U.S. Ag Exports to Canada 20032003

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Fresh Vegetables

Fresh Fruit

Snack Foods

Red Meats

Proc. Fruit & Veg

Coarse Grains

Fruit & Veg Juices

Pet Food

Poultry

Mexican Ag Exports to U.S. Mexican Ag Exports to U.S. Under NAFTAUnder 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.

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Canadian Ag Exports to U.S. Canadian Ag Exports to U.S. Under NAFTAUnder NAFTA

Canada’s agricultural exports to the U.S. reached $10.3 billion in 2003.

25 percent of Canada’s 2003 agricultural exports were live animals and red meats. 0

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

Bulk Commodity

38%

Intermediate22%

Consumer Ready40%

U.S. Ag Exports to Canada by U.S. Ag Exports to Canada by Sector 2003Sector 2003

Intermediate19%

Consumer Ready71%

Bulk Commodity

10%

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

Bulk3%

Intermed. Products

11%

Consumer Ready86%

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

Bulk6%

Intermed. Products

22%

Consumer Ready72%

Areas of Collaboration With Areas of Collaboration With MexicoMexico

US-Mexico Consultative Committee on Agriculture (CCA)– April 23rd Meeting– August 6th Meeting– Cancun

Partnership for ProsperityScience and Technology ConferenceMOU with SEMARNAT

Outstanding Issues with MexicoOutstanding Issues with Mexico

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

Areas of Collaboration With Areas of Collaboration With CanadaCanada

U.S.-Canada CCA Biotechnology

- WTO Case Regarding the European Union’s Biotech Moratorium

- EU Hormones- North American Biotech Initiative

Others- Veterinary Drugs Harmonization- Pesticides Harmonization

Outstanding Issues with CanadaOutstanding Issues with Canada

Plants– Canadian Wheat Board– Softwood Lumber– Ministerial Exemptions– Seed Certification/

Laboratory Accreditation– Seed Tag

Livestock/Meat – Access for Restricted

Feeders and other Livestock

Food Safety– BSE

Biotechnology– Voluntary Labeling– Roundup Ready Wheat

Deregulation

Processed Food Products

-Nutritional Labeling