American Agriculture Exports to Mexico in 2021 Help Narrow Trade Gap

Brian GermanAgri-Business, Trade

U.S. agriculture exports to Mexico reached record highs in 2021 in several categories. A recent report from the U.S. Department of Agriculture (USDA) indicates that the value of agricultural products exported to Mexico increased by 42 percent. Exports of ag and ag-related products totaled $27 billion, setting a new record for value. U.S. exports in 2021 have helped to close the trade gap between the two countries for agricultural goods.

“The highly integrated and complimentary nature of U.S.–Mexico food and agricultural supply chains ensured that record trade was observed across all product categories,” USDA states in a recent report. “Mexico surpassed Canada as the number two market for U.S. agricultural product exports.”

Mexico was the largest market for dairy products and poultry products, totaling $1.8 billion and $1.3 billion respectively in 2021. Dairy products reached a record high in volume, beating out the previous record set the year prior. The U.S. is responsible for supplying Mexico with approximately 95 percent of the country’s poultry, setting new records for both value and volume. New export records were also set for U.S. corn, soybeans, and wheat. American exports of fresh fruit reached $748 million, while fresh vegetable exports to Mexico reached $234 million. The report also points out record growth in the organic category, led by fresh organic fruit as well as leafy greens.

USDA points out that the recovery from pandemic lockdowns and the impact it had on global commodity prices helped achieve significant increases in values and quantity. Prior to 2021, American agriculture exports had been largely stagnant over the past decade, averaging just below $20 billion. Bilateral trade totaled $66 billion in 2021, which USDA points out caused a notable 15 percent trade deficit decline to -$13 billion. At the same time, imports of Mexican ag products grew from $34 billion in 2020 to $39 billion in 2021.

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Brian German

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Ag News Director, AgNet West