USDA Economic Research Service Briefing Room
" "  
Link: Bypass USDA Left navigation.
Search ERS

Browse by Subject
Diet, Health & Safety
Farm Economy
Farm Practices & Management
Food & Nutrition Assistance
Food Sector
Natural Resources & Environment
Policy Topics
Research & Productivity
Rural Economy
Trade and International Markets
Also Browse By


or

""

 


 
Briefing Rooms

Mexico: Trade

Contents
 

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.

U.S.-Mexico agricultural trade has experienced strong growth sine the late 1980s

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

Grains, oilseeds, meat, and related products made up about three-fourths of U.S. agricultural exports to Mexico in 2005

 

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.

Over 80 percent of U.S. agricultural imports from Mexico in 2005 consisted of beer, fruits or vegetables

 

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.

 

For more information, contact: Steven Zahniser

Web administration: webadmin@ers.usda.gov

Updated date: November 6, 2006