Transcript NAFTA Presentation

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:
–
–
–
–
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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
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NAFTA Has Accounted For 59% of
U.S. Ag Export Growth
Since NAFTA began in 1994
OTHER
41%
NAFTA
59%
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Growth in U.S. Agricultural
Exports Under NAFTA
Mexico
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Under NAFTA,
exports of U.S. food
and agricultural
products reached a
record $17.2 billion in
2003
Canada
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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
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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
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Bulk
Intermd.
Con. Ready
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Top U.S. Ag Exports to Canada
2003
1200
M
l 1000
n
800
U
S
$
Fresh Vegetables
Fresh Fruit
Snack Foods
Red Meats
600
Proc. Fruit & Veg
400
Coarse Grains
Fruit & Veg Juices
200
Pet Food
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Poultry
2003
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U.S. Pork Exports to Canada
Since 1993
Pork exports grew
from $37 million in
1993 to $211
million in 2003
M 200
l
n 150
U 100
S
$ 50
0
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U.S. Corn Exports to Canada
Since 1993
Corn exports
increased
substantially from
$81 million in
1993 to $351
million in 2003
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l
n 250
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$ 100
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U.S. Poultry Exports to Canada
Since 1993
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300
250
M
l 200
n
150
U
S 100
$
50
0
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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
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U.S. Dairy Exports to Canada
Since 1993

300
250
M
l 200
n
150
U
S 100
$
50
0
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Despite Canadian high
tariff rates on overquota dairy exports,
U.S. dairy exports
have more than tripled
since NAFTA
 Exports rose from $73
million in 1993 to
$225 million in 2003
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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
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U
S
$
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U.S. Fresh Fruits Exports to
Canada Since 1993
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U.S. Fresh Vegetables Exports to
Canada Since 1993
Exports reached $1.0
billion in 2003,
making Canada the top
export market for U.S.
fresh vegetable
exporters
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M 1000
l 800
n
600
U
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$ 200
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U.S. Ag Exports to Mexico
Under NAFTA
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
U.S. ag exports to
Mexico have doubled
under NAFTA,
reaching $7.9 billion
in 2003
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Mexico is our third
largest agricultural
market
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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
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2
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'93'94'95'96'97'98'99'00'01'02'03
Bulk
Intermd.
Con. Ready
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Top U.S. Ag Exports to Mexico
2003
1200
Red Meats
M 1000
l
800
n
600
U
S 400
$
200
Soybeans
Coarse Grains
Cotton
Wheat
Proc. Fruits and Vegs
Poultry
Dairy Products
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Planting Seeds
2003
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U.S. Pork Exports to Mexico
Since 1993
300

U.S. exports to
have increased to a
record $285 million
250
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l 200
n
150
U
S 100
$
50
0
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U.S. Poultry Exports to Mexico
Since 1993
300
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Mexico is the third
largest export market for
U.S. poultry

Mexico imported a
record $258 million in
U.S. poultry in 2003
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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
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U.S. Beef Exports to Mexico
Since 1993
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U.S. Soybean Exports to Mexico
Since 1993
U
S
$

In 2003, U.S.
soybean exports
reached a record
$980 million
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U.S. Rice Exports to Mexico
Since 1993
140
The U.S. is the
dominant supplier,
shipping $140
million in 2003
120
M
l 100
n 80
U 60
S 40
$
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0
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U.S.Wheat Exports to Mexico
Since 1993
400
The U.S. exported a
record $393 million
worth of wheat in
2003
350
M 300
l
n 250
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U 150
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$ 100
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U.S. Corn Exports to Mexico
Since 1993
1200
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1000
M
l 800
n
600
U
S 400
$ 200
The U.S. exported
$653 million of corn
in 2002
 White corn represents
approx. 20% of U.S.
corn exports to
Mexico
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The Benefits of NAFTA for
U.S. Agriculture
A. Ellen Terpstra, Administrator
Foreign Agricultural Service
U.S. Department of Agriculture
April 20, 2004
27