NAFTA Gets Real

U.S. and Mexican officials met Jan. 10 in Mexico City to discuss the North American Free Trade Agreement (NAFTA), which was fully implemented on Jan. 1 of this year.

"NAFTA has been a positive force for our respective agricultural sectors, creating not only dramatic growth in two-way agricultural trade, but providing our farmers, ranchers, and processors with the potential to take advantage of new export opportunities, while providing a clear and certain path to enhanced trade," said Mark Keenum, USDA under secretary for Farm and Foreign Agricultural Services. "The purpose of this meeting was to ensure that full implementation of NAFTA continues to move smoothly."

Keenum and James Murphy, assistant U.S. Trade representative for agricultural affairs, led the U.S. delegation. "We noted that full elimination of all duties in our bilateral trade is a reason to celebrate and to look forward to more successes," said Murphy. "At a time when we see rising prices for many commodities, open trade between Mexico and the United States also provides benefits for our consumers."

Canada and Mexico are the No. 1 and No. 2 export markets for U.S. agriculture, respectively. In fiscal year 2007, two-way agricultural trade between the U.S. and Mexico was valued at a record $22.2 billion, a nearly four-fold increase over fiscal 1993 — the year preceding the implementation of NAFTA — when two-way trade was valued at $6.4 billion. In fiscal 2008, USDA predicts two-way trade will continue to accelerate to $24 billion, an 8 percent increase.

Julio Hernandez, U.S. Grains Council’s acting director in Mexico, said despite contrary reports, there is no crisis in Mexico stemming from NAFTA’s full implementation. In fact, Hernandez said corn farmers in Mexico are getting the best price in history for their products. In addition, he said NAFTA has eased a looming crisis regarding the availability of corn, which significantly increased the price of tortillas over the last year or more for the Mexican consumer. "We are now getting all the corn we need, which is leveling the price of food and feed for Mexican farmers and consumers."

(Sources: USDA, U.S. Grains Council)

 

Leave a Reply

Latest News
Industry NewsBayer, MS Technologies Get China Approval For Balance G…
January 18, 2017
MS Technologies and Bayer have received import approval from China for Balance GT soybeans. The new Balance GT Soybean Performance Read More
Werner Baumann, Bayer AG, and Hugh Grant, Monsanto
Industry NewsReport: Monsanto, Bayer CEOs Among Latest to Make Trump…
January 18, 2017
The chief executive officers of German chemical giant Bayer AG and U.S. seed behemoth Monsanto, Werner Baumann and Hugh Grant, Read More
Giant Ragweed
HerbicidesStudy: Focusing On Weed Seedbank Can Help Manage Herbic…
January 18, 2017
Researchers writing in the latest issue of the journal Weed Science provide important insights on the control of herbicide-resistant giant Read More
Management3 Financial Trends To Watch In Agriculture
January 17, 2017
I recently had the opportunity to attend a meeting of credit managers for Midwest ag supply and input companies, in part Read More
Andersons Retail Store
CropLife 100The Andersons To Close All Retail Stores; Shutdown Does…
January 16, 2017
In a stunning announcement to the Toledo area, The Andersons Inc. said on Sunday that it would close its two Read More
Trimble TMX-2050 In-Cab Display
Eric SfiligojPrecision To Lead Agriculture In 2017?
January 16, 2017
Another new year is upon us! And I’m certain I speak for many in the agricultural world when I say Read More
Corn
Eric SfiligojThe Mood From Madison? In A Holding Pattern
January 16, 2017
Last week, I had the chance to attend the annual Wisconsin AgriBusiness Classic show in Madison, WI. It’s been a Read More
Syngenta Sign
Crop InputsAccenture Helps Syngenta Transform Its Global Logistics
January 13, 2017
Syngenta, a leading agriculture company, has collaborated with Accenture to design and implement a new digital logistics operating model across Read More
Fall Creek Seth Harden The Nature Conservancy
StewardshipLocal Farmers’ Watershed Initiative: Continuous Improve…
January 13, 2017
The goal in the Big Pine Watershed Project is to more intentionally do what local farmers and responsible ag retailers Read More
HerbicidesEPA Expands Enlist Duo Herbicide Registration To 34 Sta…
January 13, 2017
The U.S. EPA has expanded the geography for application of Enlist Duo herbicide from 15 to 34 states. This means Read More
Olson Ag Enterprise
CropLife 100Wilbur-Ellis Acquires Nebraska Seed Retailer
January 13, 2017
Wilbur-Ellis’ Agribusiness, a recognized leader in precision agriculture technology and the distribution and marketing of plant protection, seed and nutritional Read More
ManagementDeere-Precision Planting Update and the Ag Secretary Wa…
January 12, 2017
Editors Paul Schrimpf and Eric Sfiligoj provide the latest on the court date for John Deere/Precision Planting and the quest Read More
Monsanto sign
Seed/BiotechMonsanto, NRGene Form Agreement For Big Data Genomic An…
January 12, 2017
Monsanto Co. and NRGene have announced that the companies have reached a non-exclusive, multi-year global licensing agreement on NRGene’s genome-analysis Read More
AGCO Custom applicator
SprayersAGCO, Asmark Institute To Offer Training For Beginning …
January 11, 2017
AGCO Corp. and the Asmark Institute are collaborating to offer a new training program dedicated to educating and developing custom Read More
ManagementAg Land Values In Limbo In 2017
January 10, 2017
Several factors will come into play in 2017 that will determine the direction of land values. Randy Dickhut, senior vice Read More
Industry NewsPattison Agriculture Positioned To Be Leading Canadian …
January 10, 2017
Pattison Agriculture Limited (Pattison Agriculture), a division of The Jim Pattison Group (the Pattison Group), has announced the merger of Read More
Fertilizer Tender close-up
MicronutrientsHow Micronutrients Fit Into 2017 Fertility Plans
January 10, 2017
Where do micronutrients stand going forward in fertility plans? For one thing, Tim Mundorf, Field Representative with Midwest Laboratories, says Read More
Fertilizer application
State of the IndustryCautious Optimism On Fertilizer In 2017
January 10, 2017
What kind of fertilizer rates are growers and retailers looking at in 2017 and beyond? According to stakeholders CropLife magazine Read More