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Mexico is a major participant in international agricultural trade. In the broad category of agri-food products (agriculture, livestock, hunting, fishing, food, beverages, and tobacco), Mexico's total exports (to all countries) approached $17.5 billion in 2010. Corresponding imports in 2010 totaled about $20.9 billion. The United States is Mexico's largest agri-food trading partner, buying 77 percent of Mexican exports and supplying 74 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 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 agricultural trade barriers, and in 1994, Mexico joined Canada and the United States in implementing the North American Free Trade Agreement (NAFTA). In addition, Mexico has forged trade accords with about 50 other countries.
With a growing population, an expanding economy, and a more market-oriented agricultural sector, Mexico has become the second-largest agricultural trading partner of the United States (following Canada) in terms of exports and imports combined. In 2010, Mexico accounted for 14.6 percent of U.S. agricultural exports and 13.6 percent of imports, as defined and categorized by USDA. Between 1993 (the last year prior to NAFTA's implementation) and 2010, U.S. agricultural exports to Mexico expanded at a compound annual rate of 8.5 percent,whileagricultural imports from Mexico grew at a rate of 9.9 percent. In 2009, however, U.S. agricultural exports to Mexico experienced their first year-to-year decline since 1999 due to the economic downturn. With the recovery of the economy in 2010, U.S. agricultural exports to Mexico increased by 13 percent over the previous year’s levels, while corresponding imports increased by 19 percent.
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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-fourth 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.
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Roughly two-thirds of U.S. agricultural imports from Mexico consists of beer, vegetables, and 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.
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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 Global Agricultural Trade System.
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