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agricultural sector, trade barriers not reduced on schedule, and sanitary and phytosanitary (SPS) disputes. In response, much of this chapter dwells on agricultural problems rather than achievements. Stepping back from the litany of real and imagined agricultural woes, however, it is important to emphasize that agricultural trade has clearly prospered in the NAFTA era.

US agricultural exports to NAFTA partners increased by 93 percent dur- ing 1993–2003, while total US exports to the world expanded by only 39 percent (appendix table 5A.2). In 1993, the share of US agricultural exports to Canada and Mexico represented only 12 and 8 percent, respectively, of US agricultural exports to world markets. By 2003, US agricultural exports to Canada and Mexico increased to 16 and 13 percent, respectively, of US agricultural exports to the world (table 5A.2).

Between 1993 and 2003, US agricultural exports to NAFTA partners in- creased by very large percentages in key agricultural products: oilseeds (130 percent), grains and feeds (128 percent), vegetables and preparations (90 percent), and animals and animal products (69 percent). North Amer- ica has become an increasingly important market for US agricultural ex- porters. Canada is now the largest importer of US agricultural goods, dis- placing Japan in 2002. Mexico surpassed the European Union as an export market for US agriculture in 2000 (Vollrath 2004). Similarly, between 1993 and 2003, Canadian and Mexican agricultural exports to the United States also increased significantly: beverages excluding fruit juices (319 percent), sugar and related products (244 percent), vegetables and preparations (197 percent), fruit and preparations (196 percent), fresh cut flowers (1,885 percent), and grains and feeds (131 percent) (table 5A.2).

Canadian and Mexican agricultural trade with the rest of the world ex- panded less rapidly than that with the United States (table 5A.2). For ex- ample, the average annual growth rate of US agricultural exports to Canada under NAFTA is 5.1 percent, while that for the rest of the world is only 1 percent (Myles and Cahoon 2004). During 1993–2003, Canadian and Mexican agricultural exports to world markets (excluding the United States) increased 52 percent compared with agricultural exports to the United States, which increased by 125 percent.5 The United States thus re- mains a key market for Canadian and Mexican agricultural goods.6 US agricultural imports from Canada and Mexico increased from $7.4 billion

5. Canadian and Mexican agricultural exports to the world (excluding the United States) are calculated based on total Canadian and Mexican agricultural world exports minus their ex- ports to the United States. See UNCTAD’s statistical database, 2003; and USDA Foreign Agricultural Service (FATUS) database, 2003.

6. Canadian agrifood exports to the United States increased from $6.8 billion in 1993 to $13.3 billion in 2003; total Canadian agrifood exports to the world increased from $12.2 billion to $20.5 billion in the same period. Similarly, Mexican agrifood exports to the United States in- creased from $2.4 billion in 1993 to $7.9 billion in 2003 while total agrifood exports to the world increased from $3.6 billion in 1993 to $9.3 billion in 2003. See Statistics Canada, Canada Trade Online, 2004; UN Food and Agriculture Organization FAOSTAT database, 2004; and USDA (2004c).

AGRICULTURE

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