FOODEX 50th Anniversary and the Importance of Export Diversification
In March, Tokyo, Japan, hosted the 50th anniversary of FOODEX, Asia’s most significant agrofood fair and one of the largest and most visited globally. As Mexico’s Secretary of Agriculture, I attended the event last year and again this year as an invited guest of the National Agricultural Council (CNA).
FOODEX attracts numerous countries promoting their agricultural and fishery products, showcasing technological advancements for efficient production processes and innovative insumos. Participation by Mexican producers, state governments, and the federal government is crucial as it allows them to promote their products in new markets and benchmark against potential competitors.
The Need for Export Diversification
Given the current circumstances, I reaffirmed my belief in the necessity of diversifying export destinations for Mexican agrofood products. Having more options in the global market provides certainty and confidence for continued growth and investment, not just in primary production but also in technological innovation that enhances the competitiveness of our products.
For decades, the US market has provided substantial benefits due to Mexico’s competitive advantages over other countries. We can quickly deliver fresh products to major US distribution and consumption centers in less than 24 hours.
Risks of Over-reliance on the US Market
However, this privilege led to 87% of Mexican agrofood exports being concentrated in the US market, exposing us to significant risks. The new US government’s protectionist policies, such as threats of tariffs on Mexican exports—including agroalimentary products—highlight these risks, like the recent announcement to impose a 20.9% tariff on Mexican tomatoes based on false accusations of “dumping.”
Strategies for Export Diversification
To maintain our export market to the US, we should:
- Collaborate with trade partners in the US: Encourage them to alert the US government of the consequences of imposing tariffs on Mexican products, as consumers will ultimately bear the increased costs leading to inflation.
- Strengthen strategies for accessing new markets: We have successfully demonstrated our competitiveness with countries like Canada (T-MEC partner) and Japan, South Korea, and China. Explore opportunities with Arab countries, Africa, and the European Union.
- Regional collaboration: Establish partnerships with neighboring countries like Belize to create storage and distribution centers for Mexican products targeting the 18 CARICOM countries, addressing a $3.06 billion annual market with 417,000 consumers.
Importance of Domestic Agricultural Production
While some may argue for prioritizing the domestic market over exports, evidence shows Mexico has ample food supply and no alimentary crisis. Instead, focus on improving access for the poorest segments through strengthened support policies. Diversify import sources for grains, soybeans, rice, wheat, and beans to reduce reliance on US imports.
Simultaneously, it’s crucial to boost domestic production of grains—especially maize and beans—to meet growing demand. The past six years saw a notable increase in maize production, partly due to the national fertilizer program. Balancing domestic production growth with export support is key to ensuring Mexico’s food sovereignty amidst protectionist challenges.
