# Presentation: 448460

## U.S. Horticultural Trade Trends Under NAFTA

***Fruit & Vegetable Trade Between***
***Canada, Mexico, and the United States***
***Expanding Significantly***

**Foreign Agricultural Service**
**Horticultural & Tropical Products Division**
**June 2002**

## Trade Liberalization Has Enhanced U.S. Horticultural Exports to Canada and Mexico

***At 7******th****** Year Of NAFTA***
***Combined U.S. Exports Set a Record $4.3 Billion***

***U.S./Canada FTA***
***Implementation***

***NAFTA***
***Implementation***

_***U.S. Exports***_
_***to Mexico***_

_***U.S. Exports***_
_***to Canada***_

***Source:U.S. Bureau of the Census***

## U.S. Horticultural Imports from Canada and Mexico Expanding As Well

***Source:U.S. Bureau of the Census***

***Combined U.S. Imports Reached a Record  $6.2 Billion in 2001***

***U.S./Canada FTA***
***Implementation***

***NAFTA***
***Implementation***

_***U.S. Imports***_
_***from Mexico***_

_***U.S. Imports from Canada***_

## U.S. Fresh Fruit and Vegetable Exportsto Mexico Continued to Grow in 2001

***Source:U.S. Bureau of the Census***

**U.S. Fresh Fruit and Vegetable Exports****to Mexico Continued to Grow in 2001**

**Shipments of Fresh Produce Set A Record of More than $300 Million in 2001**

_***U.S. Fresh Fruit & Vegetable***_
_***Exports to Mexico***_

***Devaluation of the***
***Mexican Peso***

## Mexico’s Demand for U.S. Processed Vegetables Continues to Increase

***Source:U.S. Bureau of the Census***

**Frozen Potato Fries Shipments is an Important Component**

## Mexico Accounts for a Third of U.S. Fresh Fruits and Vegetables Exports

_***U.S. Exports of Fresh Fruits and Vegetables to Mexico as a Percentage of Global Sales***_

***Source:U.S. Bureau of the Census***

***Share Has Bounced Back in Recent Years***

## Apples are the Top U.S. Fresh FruitExported to Mexico

***Source:U.S. Bureau of the Census***

***U.S. Apples to Mexico Have Been Plagued with Problems***

## U.S. Imports of Fresh Fruits and Vegetables from Mexico Hit Another Record in 2001

***Imports Approaching the $3 Billion Mark***

***Source:U.S. Bureau of the Census***

_***U.S. Fresh Fruit & Vegetable***_
_***Imports from Mexico***_

## Mexico Supplies Most of U.S. Imports

**of Fresh Fruits and Vegetables**

***But Share of  Mexican Produce in the U.S. Import Market is Decreasing***

_***Percentage of U.S.Fresh Produce***_
_***Imports Supply by Mexico***_

***Source:U.S. Bureau of the Census***

## Tomatoes are the Leading Fresh Produce the United States Imports from Mexico

***Source:U.S. Bureau of the Census***

***Mexican Product Has Given Strong Competition to U.S. Producers***

## U.S. Horticultural Trade Deficit with MexicoContinues to Expand

***A Stronger U.S. Dollar vis-à-vis the Mexican Peso is an Important Factor***

_**Trade Balance**_

_**Exchange Rate**_

_**Trade Balance**_

_**Exchange Rate**_

***1/ Exchange rate in nominal value***
***    ******Source:U.S. Bureau of the Census and***
***    ******Classic Currency Converter.***

**Mexican Pesos per U.S. Dollars 1/**

**$Billion**

***Calendar Years***

## Canada is the Largest Customer for U.S.Fresh Fruit and Vegetable Exports

***Source:U.S. Bureau of the Census***

**Canada is the Largest Customer for U.S.****Fresh Fruit and Vegetable Exports**

***Shipments of Fresh Fruits & Vegetables Set A Record $1.5 Billion in 2001***

_***U.S. Fresh Fruit & Vegetable***_
_***Exports to Canada***_

## Nearly Half of U.S. Horticultural Exports to Canada Consist of Fresh Fruits and Vegetables

***Key Products Include Grapes, Citrus, Strawberries, and Tomatoes***

_***Shipments of Fresh Fruits and Vegetables as a***_
_***Percentage of U.S. Total Horticultural Exports to Canada***_

***Source:U.S. Bureau of the Census***

## Canada Holds the Largest Share of U.S. Global Exports of Fresh Fruits and Vegetables

***Nearly All of U.S. Potato Exports are Directed to the Canadian Market***

***Source:U.S. Bureau of the Census***

_***Canada’s Share of U.S. Export Value***_

## Canada’s Share of U.S. Fresh Fruit and Vegetable Exports is Declining

***Export Markets for U.S. Fresh Produce Have Become More Diversified ***

_***Exports of Fresh Fruits and Vegetables to Canada as a Percentage of U.S. Global Shipments***_

***Source:U.S. Bureau of the Census***

**62%**

**43%**

## Half of U.S. Exports of Fresh Vegetables

**Destined to Canada**

***Lettuce, Tomatoes, and Potatoes Lead U.S. Vegetable Exports To Canada***

***U.S. Fresh Vegetable Exports to Canada***

***Source:U.S. Bureau of the Census***

## Lettuce is the Leading Fresh Vegetable theUnited States Exports to Canada

***Source:U.S. Bureau of the Census***

_***U.S. Fresh Lettuce ***_
_***Exports to Canada***_

***Accounts for About 20% of Fresh Vegetables Total***

## U.S. Imports of Canadian Processed Fruits and Vegetables Increasing Sharply

***Canada Accounts for a Third of U.S. Imports of Processed Fruits & Vegetables***

_***U.S. Imports of Processed Fruits and Vegetables***_
_***From Canada***_

***Source:U.S. Bureau of the Census***

## Frozen Vegetables are the Main Processed Horticultural Product the United States

**Frozen Vegetables are the Main Processed Horticultural Product the United States**
**Imports from Canada**

***Frozen potato fries are the leading component***

***U.S. Frozen Vegetable Imports from Canada***

***Source:U.S. Bureau of the Census***

## U.S. Horticultural Trade Surplus

**U.S. Horticultural Trade Surplus**
**with Canada Narrowing**

_**Exchange Rate**_

_**Trade Balance**_

_**Trade Balance**_

_**Exchange Rate**_

***1/ Exchange rate in nominal value***
***    ******Source:U.S. Bureau of the Census and***
***    ******Classic Currency Converter.***

***Calendar Years***

**$Billion**

**Canadian Dollars per U.S. Dollars 1/**

***A Strong U.S. Dollar vis-à-vis the Canadian Dollar is an Important Factor***