PORK AND TEQUILA BENEFITED BY TPP
March 4th, 2016In just two decades, Mexico managed to be the main agri-food supplier to the United States, thanks to the North American Free Trade Agreement. Today it exports about 20% of the food that the country consumes per year, according to the Ministry of Agriculture (Sagarpa).
Now, the growth opportunities offered by the Trans-Pacific Partnership Agreement (TPP) are extensive, especially in the export of products such as pork and tequila. National companies will be able to sell them to six new markets: Australia, New Zealand, Brunei, Singapore, Vietnam and Malaysia, says Raúl Urteaga, general coordinator of International Affairs at Sagarpa, who adds that food and beverages are one of the main strengths of Sagarpa. Mexico. For example, he explains, “in 2014, our export of pork to Japan (one of the tpp nations) reached 380 million dollars (mdd). In fact, it was the first export product to that country, above auto parts and automobiles”.
Tequila producers are also preparing to reach new markets, according to Roberto Anaya, general director of the National Chamber of the Tequila Industry. This beverage closed in 2015 with a production of 248.3 million liters, an increase of 2.4% compared to the end of 2014. This year the industry expects to exceed 260 million liters. On the other hand, tequila exports in 2015 closed at 182.9 million liters, an increase of 6% compared to 2014. This year the industry expects to export 190 million liters.
The other side of the coin is the dairy sector, which will be threatened by the entry of Australia and, above all, New Zealand, which is the most efficient in the sector globally and produces almost twice as many liters per year at low cost. than Mexico. This will increase foreign competition from finished dairy products, according to René Fonseca, general director of the National Chamber of Milk Industry (Canilec).