mexico

New York Times: How NAFTA Shapes Beer, Bacon and Blue Jeans Trade

Dan Industry News Release, Trade

The New York Times recently outlined what the North American Free Trade Agreement (NAFTA) means for three items notorious for their association with American culture.

new yorkCombined, what should be considered for a country song title, the article details the cross-border trade of beer, bacon and blue jeans. The article notes that a change in trade policy could change the future of the three American icons.

Mexico relies on the U.S. to ship beer making ingredients across the border to brew up a batch, that then returns to the U.S. as Mexico’s biggest agricultural export to the United States. More than half of the barley exported from the United States goes to Mexico, and most of the hops that Mexico imports come from the United States.

As for bacon, many feeder pigs are born in Canada, then shipped to the U.S. for farmers to “finish,” and ultimately, lead to bacon. Under World Trade rules, neither the U.S. nor Canada charges a tariff on imported pork. But, U.S. pork would face a tariff of 20 percent when moving into Mexico.

Finally, blue jeans made in Mexico use U.S. cotton from 17 states. A no-NAFTA future would mean jeans made in Mexico and bound for the U.S., would also face a steep tariff.

From the National Association of Farm Broadcasting News Service.

The complete New York Times article may be read here.