Mexico Increasingly Important U.S. Ag Export Market

Mexico Increasingly Important U.S. Ag Export Market

I’m KayDee Gilkey with today’s Northwest Farm and Ranch Report.

Last week I reported on the MIST Countries --Mexico, Indonesia, South Korea and Turkey -- whose markets accounted for more than 21 percent of U.S. exports with shipments reaching $29 billion compared to $18 billion only five years ago.

Today we are going to learn more about Mexico as one of US Ag important export markets. Mexico has a trillion-plus economy and is currently ranked the 11th largest economy in the world.

US Wheat Associate’s analyst Mitch Skalicky explains how Mexico economy and participation in global trade has grown over the past 25 years.

Skalicky: “Since 2010 it has been referred to the Aztec Tiger outpacing China in increasing exports from the U.S. With the exports being transported by a variety of mode: including truck, rail and ship. With the proximity of the U.S. being a major advantage in terms in logistics of delivery. So what does the future hold? Well, Mexico will likely overtake Brazil become the largest economy in Latin America in the next decade.”

Skalicky shares that U.S. ag producers are enjoying a robust trade relationship with our neighbors South of the Border.

Skalicky: “These are the top U.S. exports: corn, red meat, soybeans, wheat, poultry. We are enjoying a trade surplus agriculturally speaking. U.S. exports to Mexico are almost $20 billion dollars where U.S. imports are just over $17 billion.”