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NAFTA, Canada, and Mexico: Mexico Trade

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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 $16.9 billion in 2008. Corresponding imports in 2008 totaled about $23.2 billion. The United States is Mexico's largest agri-food trading partner, buying 78 percent of Mexican exports and supplying 76 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 free-trade accords with about 40 other countries.

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 27 countries of the European Union) in terms of exports and imports combined. In 2008, Mexico accounted for about 13.9 percent of U.S. agricultural exports and 13.5 percent of imports, as defined and categorized by USDA. Between 1993 (the last year prior to NAFTA's implementation) and 2008, U.S. agricultural exports to Mexico expanded at a compound annual rate of 10.4 percent, while agricultural imports from Mexico grew at a rate of 9.7 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 four-fifths 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 four-fifths of U.S. agricultural exports to Mexico in 2008 1/ d
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Almost 70 percent 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.

Almost 70 percent of U.S. agricultural imports from Mexico in 2008 consisted of beer, fruits, or vegetables 1/ d
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Selected U.S. agricultural exports to MexicoExcel file

Selected U.S. agricultural imports from MexicoExcel file

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: September 14, 2009