U.S. – Mexico Agriculture Overview

Ag. Minister Counselor Dan BermanThursday, February 23, 2012

U.S. – Mexico Agriculture OverviewMexican Agriculture Production

3%

5%

7%

9%

11%

13%

15%

17%

19%

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Ag. Share of Total GDP

Agriculture Labor as a Share of Total Labor

Ag., Food, Beverage and Tobacco Industry Share of Total GDP

U.S. – Mexico Agriculture OverviewMexican Agriculture Production

• 2010 Major Crops by Value (Billion Pesos): Corn (66), Cattle (59), Poultry (56), Sugar Cane (31), Swine (29), Forage (16), Sorghum (16), Tomato (15), Avocado (14), Peppers (13), Beans (10).

• Key Challenges: • Water/Climate Change• Viability of Traditional Production• Weak Institutions• Security

U.S. – Mexico Agriculture Overview

USDA MissionFAS• Trade Policy• Economic Analysis• Agricultural Promotion and Trade Facilitation

• 2 ATOs• 41 USDA Trade Association/Cooperators

• Cooperative Programs and Capacity BuildingAPHIS• 200+ APHIS employees throughout Mexico • Facilitate Trade and Support Ag. Production in Mexico and

the United States

Agricultural Trade Offices

• OBJECTIVE:– Promotion and Development of U.S. Market for

Agricultural (Food and Fiber), Livestock, Fisheries and Forestry in Mexico

Services

American Exporters Mexican ImportersInfo on Importers/Distributors Training & Info Seminarsand Mexican Brokers Credit ProgramsFacilitate Customs Clearance Quality Samples ProgramMexican Trade Show Presence Info on U.S. Trade Shows

U.S. – Mexico Agriculture Overview

U.S. – Mexico Agriculture Overview

APHIS - International Services

• Facilitate Bilateral Agricultural Trade• Remove Sanitary and Phytosanitary Trade Barriers

• Safeguard U.S. and Mexican Animals, Plantsand Ecosystems

• Ensure Effective and Efficient Management of U.S. and Mexico Collaborative Programs• Support Training Programs for Enhancing Technical Collaboration on Important Issues

U.S. – Mexico Agriculture Overview

USDA Footprint (19 Offices for APHIS, ARS, FAS)

U.S. – Mexico Agriculture Overview

Bilateral Trade in U.S. $Billions

10

15

20

2006 2007 2008 2009 2010 2011

U.S. Exports

U.S. Imports

Top 6 Items in U.S. $Billions for 2011United States Exports• Corn ($2.7)• Soybeans ($1.7)• Wheat ($1.0)• Cotton ($0.8)• Boneless Beef ($0.7)• Milk Powder ($0.6)

United States Imports• Tomatoes ($1.8)• Beer ($1.7)• Sugar ($0.9)• Avocados ($0.8)• Peppers ($0.6)• Live Cattle ($0.6)

2008-2010 2011-2012

Production 21869 18400Imports 8021 10500

4000

6000

8000

10000

12000

5000

10000

15000

20000

25000

1000

’s

Ton

sMexico’s Agronomic Situation

CORN

21,869 10,500

8,021

18,400

2008-2010 2011-2012

Production 21869 18400Imports 8021 10500

4000

6000

8000

10000

12000

5000

10000

15000

20000

25000

1000

’s

Ton

sMexico’s Agronomic Situation

CORN

21,869 10,500

8,021

18,400

2008-2010 2011-2012

Production 21869 18400Imports 8021 10500

4000

6000

8000

10000

12000

5000

10000

15000

20000

25000

1000

’s

Ton

sMexico’s Agronomic Situation

CORN

21,869 10,500

8,021

18,400

2008-2010 2011-2012

Production 3949 3700Imports 3333 4100

2500

2800

3100

3400

3700

4000

4300

3000

3220

3440

3660

3880

1000

’s

Ton

sMexico’s Agronomic Situation

WHEAT3,949

3,700

3,333

4,100

2008-2010 2011-2012

Production 21869 18400Imports 8021 10500

4000

6000

8000

10000

12000

5000

10000

15000

20000

25000

1000

’s

Ton

sMexico’s Agronomic Situation

CORN

21,869 10,500

8,021

18,400

2008-2010 2011-2012

Production 237 157Imports 617 725

100

250

400

550

700

850

50

100

150

200

250

300

350

400

1000

’s

Ton

sMexico’s Agronomic Situation

RICE (Milled )

617

157

237

725

2008-2010 2011-2012

Production 1055 600Imports 127 250

50

100

150

200

250

300

350

400

50

250

450

650

850

1050

1250

1000

’s

Ton

sMexico’s Agronomic Situation

DRY BEANS

1,055

250

127

600

U.S. – Mexico Agriculture Overview

Current Priority IssuesUnited States • Expanded Market Access• Elimination of SPS/TBT

Barriers• Food Safety

Mexico• Market Access • Food Safety

Long-Term Goal: Build on the NAFTA

Metric: Further Integration as Evidenced by Increased Trade Flows in Both Directions