# Presentation: 750507

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

-              May 2005

## 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**** **

## NAFTA AT 11

- An ERS study shows that in the 11 years since implementation of the NAFTA, the agricultural sectors of Canada, Mexico, and the United States have become much more integrated

## 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 $18.2 billion in 2004

## U.S. Agricultural* Trade with Canada and Mexico($ Millions)

|  | Year | U.S. Exports | U.S. Imports | Trade Balance |
| --- | --- | --- | --- | --- |
| Canada | 1993** | 5,308.2 | 4,657.9 | 650.3 |
|  | 2004 | 9,669.5 | 11,454.8 | (1,785.3) |
| Mexico | 1993** | 3,618.3 | 2,718.5 | 899.8 |
|  | 2004 | 8,494.1 | 7,260.9 | 1,233.2 |

- * Excludes Fish and Forest Products
- ** Pre-NAFTA Implementation
- Source:  U.S. CENSUS
- [Note:  While the United States is running a deficit in our agricultural trade with Canada, on a per capita basis, U.S. imports from Canada in 2004 totaled an estimated $39 per capita, while U.S. agricultural exports to Canada that same year totaled approximately $295 per capita.]

## U.S. Ag Exports to Canada Under NAFTA 

- Exports to Canada have increased about 83%, reaching $9.7 billion in 2004
- Canada is our largest agricultural market

## U.S. Ag Exports To Canada by Sector

- Benefits of NAFTA are widely distributed across U.S. agriculture.
- 2004 exports were record for:
- Vegetables
- fruits
- Soybean meal
- Bulk commodities
- Snack foods

## Top U.S. Ag Exports to Canada 2004

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

- Pork exports grew from $37 million in 1993 to $ 301million in 2004

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

- Corn (excluding seeds) exports increased substantially from $81 million  in 1993 to $208 million in 2004

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

- In 2004, Canada was the number three export market for U.S. poultry
- Total exports rose to $330 million, up from $164 million in 1993,  a 100% gain over pre-NAFTA levels

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

- Despite high Canadian  tariff rates on over-quota dairy exports, U.S. exports have more than tripled since NAFTA
- Exports rose from $57 million in 1993 to $228 million in 2004

- Source:  US Trade Statistics (data series change from 04 presentation, FAS/DLP)

## 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 $885 million in 2004, up from $609 in 1993

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

- Exports reached $1.0 billion in 2004, 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 $8.5 billion in 2004
- 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
- 2004 exports were records for:
- Intermediate products
- Processed fruits and vegetables
- Red meats
- Wheat
- Rice
- Soybeans

## Top U.S. Ag Exports to Mexico 2004

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

- U.S. exports to Mexico have increased to a record $566.5 million

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

- Mexico was the second largest export market for U.S. poultry in 2004
- Poultry exports reached a record $331 million in 2004

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

- Mexico is the largest market for U.S. exports of beef and beef offals
- In 2004, exports reached $565.9 million

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

- In 2004, U.S. soybean exports reached a record $784.7 million

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

- The U.S. is the dominant supplier, shipping a record $182.7 million in 2004

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

- The U.S. exported a record $459 million worth of wheat in 2004

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

- The U.S. exported $678 million of corn in 2004
- White corn  represents approx. 20% of U.S. corn exports to Mexico

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

- May 2005