Hold Beef Trade Position with Mexico

After recent meetings with Mexican trade officials in Mexico City, NCBA Chief Economist Gregg Doud said: “There will be no negotiating changes to the beef trading relationship with Mexico that are detrimental to U.S. cattlemen, period.  It’s that simple.”

Pending Mexican beef trade issues were discussed at the meeting.

“Currently, the U.S. exports more beef to Mexico than any other country in the world,” explains Doud. “We import feeder cattle and export beef and beef variety meats, adding value along the way. NCBA has had a long-standing, positive rapport with Mexican cattle producers. We value this relationship as it is beneficial for both countries.”

Doudd notes that due to the major elections coming up in Mexico in July, various parties involved appear to be attempting to pull beef export, import and other agricultural issues into a Mexican political crossfire.  “We are concerned that some are attempting to prompt changes in our relationship under the auspices of this election,” he says.  “When talking with the Mexican government officials, they could neither confirm nor deny that any trade dispute related to beef was forthcoming.” 

The tariff rate on beef trade between the U.S. and Mexico has been zero since 1994. But, a very high tariff is currently imposed on select  U.S. companies exporting beef to Mexico. U.S. beef exports to Mexico have grown over the last eight years from 42,000 metric tons of fresh, frozen, and processed beef in 1995 to 350,000 metric tons of beef and beef variety meats in 2002. This is 12 percent more than in 2001, at a value of $854.3 million.

“The long term forecast for the growth of U.S. beef exports to Mexico is promising, thanks to their growing population and expanding economy,” says Doud.

In 2002, the U.S. share of Mexico’s beef import market was 80 percent.  Mexico became the No. 1 destination for exports of U.S. beef and beef variety meat, when measured by volume, overtaking Japan.  Japan remains the largest market for the U.S. beef industry in value terms.