The Benefits of NAFTA for

U.S. Agriculture

A. Ellen Terpstra, Administrator

Foreign Agricultural Service
U.S. Department of Agriculture
April 20, 2004

1
 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
2
 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

3
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
4
 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

5
NAFTA Has Accounted For 59% of
U.S. Ag Export Growth
Since NAFTA began in 1994

OTHER
41%
NAFTA
59%

6
 Growth in U.S. Agricultural
Exports Under NAFTA
Under NAFTA, 20
18
exports of U.S. food 16
14
and agricultural 12
10
products reached a 8
6
record $17.2 billion in 4
2003 2
0
3

3
7
'9

'9

'0
'9

'9

'0
Mexico Canada

7
 U.S. Ag Exports to Canada
Under NAFTA
10
 Exports to Canada
9 have increased 75%,
B 8
i 7
reaching $9.3 billion
l 6 in 2003
l
5
i
4
o
n 3
 Canada is our largest
s 2 agricultural market
1
0
'94
'95
'96
'97
'98

'00
'01

'03
'93

'99

'02

8
U.S. Ag Exports To Canada by Sector
 Benefits of NAFTA are 10
widely distributed across B
9
8
U.S. agriculture. i
7
• 2003 exports were record l
6
l
for: i
5
• Vegetables 4
o
n 3
• Meats 2
s
• Soybean meal 1
• Bulk commodities 0
'93'94'95'96'97'98'99'00'01'02'03
• Snack foods
Bulk Intermd. Con. Ready

9
Top U.S. Ag Exports to Canada
2003
1200
M
l 1000 Fresh Vegetables
n Fresh Fruit
800 Snack Foods
U 600 Red Meats
S Proc. Fruit & Veg
$ 400 Coarse Grains
Fruit & Veg Juices
200
Pet Food
0 Poultry
2003

10
 U.S. Pork Exports to Canada
Since 1993
250
 Pork exports grew
from $37 million in M 200
l
1993 to $211 n 150

million in 2003 U 100

S
$ 50

'94

'97

'00

'02
'03
'93

'95
'96

'98
'99

'01
11
 U.S. Corn Exports to Canada
Since 1993
 Corn exports 400
350
increased M 300
l
substantially from n 250
200
$81 million in U 150
1993 to $351 S
$ 100
million in 2003 50
0

'94

'97

'00

'02
'03
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'95
'96

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'01
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 U.S. Poultry Exports to Canada
Since 1993
 In 2003, Canada was
300
the number two export
market for U.S. M
250

poultry, a 77% gain l 200

n
over pre-NAFTA 150
U
levels S 100
 Total exports rose to $
50
$268 million, up from 0

'94

'97

'00

'02
'03
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'96

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'01
$164 million in 1993

13
 U.S. Dairy Exports to Canada
Since 1993
 Despite Canadian high
300
tariff rates on over-
quota dairy exports, M
250

U.S. dairy exports l 200

n
have more than tripled 150
U
since NAFTA S 100
 Exports rose from $73 $
50
million in 1993 to 0

'94

'97

'00

'02
'03
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'95
'96

'98
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'01
$225 million in 2003

14
 U.S. Fresh Fruits Exports to
Canada Since 1993
 Canadian retail grocery stores
devote more space to fresh
produce than any other food 900
sector 800
 NAFTA border facilitation M 700
measures and modern l 600
transportation provide Canadian n 500
fresh fruit buyers with prompt 400
U
delivery 300
S
 Fresh fruit exports, led by $ 200
strawberries, grapes, oranges 100
and apples, reached $820
0
million in 2003, up from $609
'94

'97

'00

'02
'03
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'95
'96

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'01
in 1993

15
U.S. Fresh Vegetables Exports to
Canada Since 1993
 Exports reached $1.0
billion in 2003, 1200

making Canada the top M 1000

export market for U.S. l 800
n
fresh vegetable 600
U
exporters S 400
$
200

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 U.S. Ag Exports to Mexico
Under NAFTA
8  U.S. ag exports to
7 Mexico have doubled
B
i
6 under NAFTA,
l 5 reaching $7.9 billion
l
i
4 in 2003
o 3
n
2
s  Mexico is our third
1
largest agricultural
0
market
'97
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'99
'00
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'01
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 U.S. Ag Exports To Mexico by
Sector
 Benefits of NAFTA are 9
widely distributed across B
8
U.S. agriculture i 7
• 2003 exports were records for: l 6
• Intermediate products l 5
• Processed fruits and i 4
o 3
vegetables n
• Red meats 2
s
• Wheat 1
0
• Rice
'93'94'95'96'97'98'99'00'01'02'03
• Soybeans
Bulk Intermd. Con. Ready

18
Top U.S. Ag Exports to Mexico
2003
1200
Red Meats
M 1000
Soybeans
l 800 Coarse Grains
n
Cotton
600
U Wheat
S 400 Proc. Fruits and Vegs
$ Poultry
200
Dairy Products
0 Planting Seeds
2003

19
 U.S. Pork Exports to Mexico
Since 1993
300
 U.S. exports to 250
have increased to a M
l 200
record $285 million n
150
U
S 100
$
50

0
'93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03

20
U.S. Poultry Exports to Mexico
Since 1993
300
 Mexico is the third
largest export market for
250
M U.S. poultry
l 200
n
150
U  Mexico imported a
S 100
$ record $258 million in
50
U.S. poultry in 2003
0
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'00

'02
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'01'

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 U.S. Beef Exports to Mexico
Since 1993
 Mexico is the second 900
largest market for U.S. 800
exports of beef and M 700
l 600
beef offals n 500
U 400
S 300
 U.S. beef exports $ 200
increased to $877 100
million in 2003 0
'93
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'00
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U.S. Soybean Exports to Mexico
Since 1993
1000
900
M 800
l 700  In 2003, U.S.
n 600
500 soybean exports
U
S
400
300
reached a record
$ 200 $980 million
100
0
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'97
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 U.S. Rice Exports to Mexico
Since 1993
140
 The U.S. is the 120
M
dominant supplier, l 100
n 80
shipping $140
U 60
million in 2003 S 40
$
20
0
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 U.S.Wheat Exports to Mexico
Since 1993
400
 The U.S. exported a 350
M 300
record $393 million l
n 250
worth of wheat in 200
U 150
2003 S
$ 100
50
0
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'94
'95
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'03
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'00
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 U.S. Corn Exports to Mexico
Since 1993
1200  The U.S. exported
M 1000 $653 million of corn
l 800
n
in 2002
600
U
 White corn represents
S 400 approx. 20% of U.S.
$
200 corn exports to
0 Mexico
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'95

'97

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26
The Benefits of NAFTA for
U.S. Agriculture

A. Ellen Terpstra, Administrator

Foreign Agricultural Service
U.S. Department of Agriculture
April 20, 2004

27