U.S., Mexico review NAFTA impact to date on ag trade

U.S., Mexico review NAFTA impact to date on ag trade U.S. and Mexican government officials met in Mexico City Thursday to ensure that agricultural trade between the countries continues in line with the now fully implemented North American Free Trade Agreement.
   “We agreed we should not look backwards and risk all we have accomplished,” said James M. Murphy, assistant U.S. trade representative for agricultural affairs, in a statement on Friday about the meetings. “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.”
   To address trade concerns in the livestock sector, the United States and Mexico agreed to create a working group. The livestock working group will meet by mid-February.
   Canada and Mexico are the No. 1 and No. 2 export markets, respectively, for U.S. agriculture, the U.S. Department of Agriculture said. In fiscal year 2007, two-way agricultural trade between the United States and Mexico was valued at a record $22.2 billion, a nearly fourfold increase over fiscal year 1993 — the year preceding implementation of NAFTA. In fiscal 2008, USDA predicts two-way trade will continue to increase to $24 billion, an 8 percent increase.
   With full implementation of NAFTA on Jan. 1, the final duties on a handful of agricultural commodities are now removed. These final commodities include U.S. exports to Mexico of corn, dry edible beans, and nonfat dry milk; Mexican exports to the United States of certain horticultural products; and two-way sweetener trade.
   Since 2005, the United States has invested almost $20 million in programs and technical exchanges to help Mexican agricultural producers address production, distribution and marketing-related challenges.
   “We will continue to work with Mexico on a broad range of cooperative activities and initiatives associated with the transition to full and open trade,” said Mark E. Keenum, USDA’s undersecretary for farm and foreign agricultural services.