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Mexico is a major participant in international
agricultural trade. In the broad category of agri-food products
(agriculture, forestry, livestock, hunting, fishing, foods, beverages,
and tobacco), Mexico's total exports (to all countries) approached
$11.8 billion in 2005. Corresponding imports in 2005 totaled about
$14.3 billion. The United States is Mexico's most significant agri-food
trading partner, buying roughly 85 percent of Mexican exports and
supplying about 65 percent of the country's imports in this category.
Agricultural trade between Mexico and the United States encountered
a turning point in the late 1980s when Mexico emerged from a period
of economic difficulties and adopted a series of important trade
reforms. In 1986, Mexico agreed to join the General Agreement on
Tariffs and Trade (GATT), the predecessor to the World Trade Organization.
In the early 1990s, Mexico lowered a number of significant agricultural
trade barriers. And in 1994, Mexico joined Canada and the United
States in implementing the North American Free Trade Agreement
(NAFTA). Mexico also has forged free-trade accords with about 30
other countries, and many of these agreements have important agricultural
provisions.

With a growing population, an expanding economy, and a more market-oriented
agricultural sector, Mexico has become the third largest agricultural
trading partner of the United States (following Canada and the
25 countries of the European Union) when measured in terms of both
exports and imports. In 2005, Mexico accounted for about 15 percent
of both U.S. agricultural exports and imports, as defined and categorized
by USDA. Between 1993 (the last year prior to NAFTA's implementation)
and 2005, U.S. agricultural exports to Mexico expanded at a compound
annual rate of 8.3 percent, while agricultural imports from Mexico
grew at a rate of 9.8 percent.
U.S.-Mexico agricultural trade is largely complementary, meaning
that the United States tends to export different commodities to
Mexico than Mexico exports to the United States. Grains, oilseeds,
meat, and related products make up about three-fourths of U.S.
agricultural exports to Mexico. Mexico does not produce enough
grains and oilseeds to meet internal demand, so the country's food
and livestock producers import sizable volumes of these commodities
to make value-added products, primarily for the domestic market

Roughly three-fourths of U.S. agricultural imports from Mexico
consist of beer, vegetables, or fruit. These imports are closely
tied to Mexico's historical expertise in producing alcoholic beverages
and a wide range of fruits and vegetables, along with a favorable
climate whose growing season largely complements that of the United
States.

Selected U.S. agricultural
exports to Mexico
Selected U.S. agricultural
imports from Mexico
To view more detailed U.S.-Mexico agricultural trade statistics,
go to USDA Foreign Agricultural Service's U.S.
Trade Internet System.
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