1 The Benefits of NAFTA for U.S. Agriculture May 2005

2 U.S. Agriculture is Export Oriented 1/3 of U.S. crop acreage is exported Exports reached $59.5 billion in percent of farm cash receipts from exports

3 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

4 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

5 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

6 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

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

8 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

9 U.S. Agricultural* Trade with Canada and Mexico ($ Millions) YearU.S. Exports U.S. Imports Trade Balance Canada1993**5,308.24, , ,454.8(1,785.3) Mexico1993**3,618.32, ,494.17,260.91,233.2 * 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.]

10 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

11 U.S. Ag Exports To Canada by Sector Benefits of NAFTA are widely distributed across U.S. agriculture exports were record for: Vegetables fruits Soybean meal Bulk commodities Snack foods

12 Top U.S. Ag Exports to Canada 2004

13 U.S. Pork Exports to Canada Since 1993 Pork exports grew from $37 million in 1993 to $ 301million in 2004

14 U.S. Corn Exports to Canada Since 1993 Corn (excluding seeds) exports increased substantially from $81 million in 1993 to $208 million in 2004

15 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

16 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)

17 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

18 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

19 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

20 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

21 Top U.S. Ag Exports to Mexico 2004

22 U.S. Pork Exports to Mexico Since 1993 U.S. exports to Mexico have increased to a record $566.5 million

23 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

24 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

25 U.S. Soybean Exports to Mexico Since 1993 In 2004, U.S. soybean exports reached a record $784.7 million

26 U.S. Rice Exports to Mexico Since 1993 The U.S. is the dominant supplier, shipping a record $182.7 million in 2004

27 U.S.Wheat Exports to Mexico Since 1993 The U.S. exported a record $459 million worth of wheat in 2004

28 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

29 The Benefits of NAFTA for U.S. Agriculture May 2005