Thursday, May 5, 2011

Agricultural Trade Between the U.S. and Mexico

About 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.

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.

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.

source: usda