# Presentation: 697856

## The Benefits of NAFTA forU.S. Agriculture

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

## 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**

## Importance of Exports

**America’s 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**

## 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**** **

## 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 Mexico’s food and agriculture sector**

## NAFTA Has Accounted For 59% of U.S. Ag Export Growth

## 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

## 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

## 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

## Top U.S. Ag Exports to Canada 2003

## U.S. Pork Exports to Canada Since 1993

- Pork exports grew from $37 million in 1993 to $211 million in 2003

## U.S. Corn Exports to Canada Since 1993

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

## 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

## 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

## 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

## 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

## 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

## 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

## Top U.S. Ag Exports to Mexico 2003

## U.S. Pork Exports to Mexico Since 1993

- U.S. exports to have increased to a record $285 million

## 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

## 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

## U.S. Soybean Exports to Mexico Since 1993

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

## U.S. Rice Exports to Mexico Since 1993

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

## U.S.Wheat Exports to Mexico Since 1993

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

## 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

## The Benefits of NAFTA for U.S. Agriculture

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