1. NAFTA Agricultural Trade Relationships By Patricia Sheikh Deputy Administrator International Trade Policy Foreign Agricultural Service, U.S. Department of Agriculture

2. NAFTA Has Benefited the U.S. Ag Sectors NAFTA markets continue to be a bright spot for U.S. agriculture, as agricultural trade with our NAFTA partners has increased in size and importance.

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

4. Growth in U.S. Agricultural Exports Under NAFTA U.S. farmers and ranchers have been the beneficiaries of NAFTA’s success, as exports of food and agricultural products from the U.S. to our NAFTA partners reached a record $17.2 billion in 2003; a two-fold increase since the signing of the Agreement in 1993.

5. U.S. Ag Exports to Mexico Under NAFTA U.S. ag exports to Mexico have doubled under NAFTA, reaching $7.9 billion in 2003. Mexico is our third largest agricultural market.

6. U.S. Ag Exports to Canada Under NAFTA U.S. ag exports to Canada have increased 75% under NAFTA, reaching $9.3 billion in 2003. Canada is our largest agricultural market.

7. U.S. Ag Exports To Mexico by Sector Benefits of NAFTA are widely distributed across U.S. agriculture. In 2003 record exports of: Intermediate products Processed fruits and vegetables Red meats Wheat Rice Soybeans

8. U.S. Ag Exports To Canada by Sector Benefits of NAFTA are widely distributed across U.S. agriculture. In 2003 record exports of: Vegetables Meats Soybean meal Bulk commodities Snack Foods

9. Top U.S. Ag Exports to Mexico 2003

10. Top U.S. Ag Exports to Canada 2003

11. Mexican Ag Exports to U.S. Under NAFTA Mexico’s agricultural exports to the U.S. reached a record $6.3 billion in 2003. About 50 percent of Mexico’s agricultural exports are from the fruits and vegetable sectors.

12. Canadian Ag Exports to U.S. Under NAFTA Canada’s agricultural exports to the U.S. reached $10.3 billion in 2003. 25 percent of Canada’s 2003 agricultural exports were live animals and red meats.

13. U.S. Ag Exports to Mexico by Sector 2003

14. U.S. Ag Exports to Canada by Sector 2003

15. Mexican Ag Exports to U.S. by Sector in 2003

16. Canadian Ag Exports to U.S. by Sector in 2003

17. Areas of Collaboration With Mexico US-Mexico Consultative Committee on Agriculture (CCA) – April 23 rd Meeting – August 6 th Meeting – Cancun Partnership for Prosperity Science and Technology Conference MOU with SEMARNAT

18. Outstanding Issues with Mexico BSE and North American Harmonization High Path Avian Influenza in Texas FDA Actions on green onions, cantaloupes Technical Assistance on beef and pork Dry beans and corn? US WTO cases – Beef, rice, HFCS, foreign trade law SPS at the forefront

19. Areas of Collaboration With Canada U.S.-Canada CCA Biotechnology - WTO Case Regarding the European Union’s Biotech Moratorium - EU Hormones - North American Biotech Initiative Others - Veterinary Drugs Harmonization - Pesticides Harmonization

20. Outstanding Issues with Canada Plants – Canadian Wheat Board – Softwood Lumber – Ministerial Exemptions – Seed Certification/ Laboratory Accreditation – Seed Tag Livestock/Meat – Access for Restricted Feeders and other Livestock Food Safety – BSE Biotechnology – Voluntary Labeling – Roundup Ready Wheat Deregulation Processed Food Products -Nutritional Labeling