The Benefits of NAFTA for U'S' Agriculture

1
The Benefits of NAFTA forU.S. Agriculture

• A. Ellen Terpstra, Administrator
• Foreign Agricultural Service
• U.S. Department of Agriculture
• April 20, 2004

2
U.S. Agriculture is Export Oriented

• 1/3 of U.S. crop acreage is exported
• Exports reached 59.5 billion in 2003
• 28 percent of farm cash receipts from exports

3
Importance of Exports

• Americas farmers and ranchers export
• 49 of U.S. wheat
• 47 of U.S. rice
• 37 of U.S. soybeans
• 65 of U.S. almonds
• 43 of U.S. walnuts

4
U.S.Agricultural Exports Support Jobs

• Every 1 billion in exports creates 15,000 U.S.
  jobs
• U.S. Ag Exports 885,000 jobs
• Exports support one-third of all jobs in rural
  communities

5
Benefits of NAFTA

• Ag. exports under NAFTA 258,000 U.S. jobs
• Average annual growth 800 million
• Dismantling trade barriers market integration
• Canada is 1 U.S. export market
• Mexico is 3 U.S. export market
• U.S. is 1 export market for both Canada and
  Mexico
• Integration fueling investment
• 10.7 billion invested by U.S. in Canada and
  Mexicos food and agriculture sector

6
NAFTA Has Accounted For 59 of U.S. Ag Export
Growth
7
Growth in U.S. Agricultural Exports Under NAFTA

• Under NAFTA, exports of U.S. food and
  agricultural products reached a record 17.2
  billion in 2003

8
U.S. Ag Exports to Canada Under NAFTA

• Exports to Canada have increased 75, reaching
  9.3 billion in 2003
• Canada is our largest agricultural market

9
U.S. Ag Exports To Canada by Sector

• Benefits of NAFTA are widely distributed across
  U.S. agriculture.
• 2003 exports were record for
• Vegetables
• Meats
• Soybean meal
• Bulk commodities
• Snack foods

10
Top U.S. Ag Exports to Canada 2003
11
U.S. Pork Exports to Canada Since 1993

• Pork exports grew from 37 million in 1993 to
  211 million in 2003

12
U.S. Corn Exports to Canada Since 1993

• Corn exports increased substantially from 81
  million in 1993 to 351 million in 2003

13
U.S. Poultry Exports to Canada Since 1993

• In 2003, Canada was the number two export market
  for U.S. poultry, a 77 gain over pre-NAFTA
  levels
• Total exports rose to 268 million, up from 164
  million in 1993

14
U.S. Dairy Exports to Canada Since 1993

• Despite Canadian high tariff rates on over-quota
  dairy exports, U.S. dairy exports have more than
  tripled since NAFTA
• Exports rose from 73 million in 1993 to 225
  million in 2003

15
U.S. Fresh Fruits Exports to Canada Since 1993

• Canadian retail grocery stores devote more space
  to fresh produce than any other food sector
• NAFTA border facilitation measures and modern
  transportation provide Canadian fresh fruit
  buyers with prompt delivery
• Fresh fruit exports, led by strawberries, grapes,
  oranges and apples, reached 820 million in 2003,
  up from 609 in 1993

16
U.S. Fresh Vegetables Exports to Canada Since 1993

• Exports reached 1.0 billion in 2003, making
  Canada the top export market for U.S. fresh
  vegetable exporters

17
U.S. Ag Exports to Mexico Under NAFTA

• U.S. ag exports to Mexico have doubled under
  NAFTA, reaching 7.9 billion in 2003
• Mexico is our third largest agricultural market

18
U.S. Ag Exports To Mexico by Sector

• Benefits of NAFTA are widely distributed across
  U.S. agriculture
• 2003 exports were records for
• Intermediate products
• Processed fruits and vegetables
• Red meats
• Wheat
• Rice
• Soybeans

19
Top U.S. Ag Exports to Mexico 2003
20
U.S. Pork Exports to Mexico Since 1993

• U.S. exports to have increased to a record 285
  million

21
U.S. Poultry Exports to Mexico Since 1993

• Mexico is the third largest export market for
  U.S. poultry
• Mexico imported a record 258 million in U.S.
  poultry in 2003

22
U.S. Beef Exports to Mexico Since 1993

• Mexico is the second largest market for U.S.
  exports of beef and beef offals
• U.S. beef exports increased to 877 million in
  2003

23
U.S. Soybean Exports to Mexico Since 1993

• In 2003, U.S. soybean exports reached a record
  980 million

24
U.S. Rice Exports to Mexico Since 1993

• The U.S. is the dominant supplier, shipping 140
  million in 2003

25
U.S.Wheat Exports to Mexico Since 1993

• The U.S. exported a record 393 million worth of
  wheat in 2003

26
U.S. Corn Exports to Mexico Since 1993

• The U.S. exported 653 million of corn in 2002
• White corn represents approx. 20 of U.S. corn
  exports to Mexico

27
The Benefits of NAFTA for U.S. Agriculture

• A. Ellen Terpstra, Administrator
• Foreign Agricultural Service
• U.S. Department of Agriculture
• April 20, 2004