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1 The Benefits of NAFTA for The Benefits of NAFTA for U.S. Agriculture U.S. Agriculture A. Ellen Terpstra, Administrator Foreign Agricultural Service U.S. Department of Agriculture April 20, 2004

The Benefits of NAFTA for U.S. Agriculture

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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. U.S. Agriculture is Export Oriented. 1/3 of U.S. crop acreage is exported Exports reached $59.5 billion in 2003 - PowerPoint PPT Presentation

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Page 1: The Benefits of NAFTA for U.S. Agriculture

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The Benefits of NAFTA forThe Benefits of NAFTA forU.S. AgricultureU.S. Agriculture

A. Ellen Terpstra, Administrator

Foreign Agricultural Service

U.S. Department of Agriculture

April 20, 2004

Page 2: The Benefits of NAFTA for U.S. Agriculture

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U.S. Agriculture is U.S. Agriculture is Export OrientedExport 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

Page 3: The Benefits of NAFTA for U.S. Agriculture

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Importance of ExportsImportance 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

Page 4: The Benefits of NAFTA for U.S. Agriculture

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U.S.Agricultural Exports Support JobsU.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

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Benefits of NAFTABenefits 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

Page 6: The Benefits of NAFTA for U.S. Agriculture

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

Since NAFTA began in 1994

OTHER41%

NAFTA59%

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Growth in U.S. Agricultural Growth in U.S. Agricultural Exports Under NAFTAExports Under NAFTA

Under NAFTA, exports of U.S. food and agricultural products reached a record $17.2 billion in 2003

02468

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Mexico Canada

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

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Billions

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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 SectorU.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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Top U.S. Ag Exports to Canada Top U.S. Ag Exports to Canada 20032003

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Fresh Vegetables

Fresh Fruit

Snack Foods

Red Meats

Proc. Fruit & Veg

Coarse Grains

Fruit & Veg Juices

Pet Food

Poultry

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

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

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

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

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

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

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U.S. Fresh Fruits Exports to U.S. Fresh Fruits Exports to Canada Since 1993Canada 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

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U.S. Fresh Vegetables Exports to U.S. Fresh Vegetables Exports to Canada Since 1993Canada 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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U.S. Ag Exports to Mexico U.S. Ag Exports to Mexico Under NAFTAUnder NAFTA

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U.S. ag exports to Mexico have doubled under NAFTA, reaching $7.9 billion in 2003

Mexico is our third largest agricultural market

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U.S. Ag Exports To Mexico by U.S. Ag Exports To Mexico by SectorSector

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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Top U.S. Ag Exports to Mexico Top U.S. Ag Exports to Mexico 20032003

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Mln

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2003

Red Meats

Soybeans

Coarse Grains

Cotton

Wheat

Proc. Fruits and Vegs

Poultry

Dairy Products

Planting Seeds

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

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

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

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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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U.S. Beef Exports to Mexico U.S. Beef Exports to Mexico Since 1993Since 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 0

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

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

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

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

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

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

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

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

A. Ellen Terpstra, Administrator

Foreign Agricultural Service

U.S. Department of Agriculture

April 20, 2004