TUBAC, AZ — Mexico’s immediate proximity to the huge, wealthy U.S. market is a blessing to Mexican exporters and needs to be cultivated further, according to a panelist during a session on the Trans-Pacific Partnership during the Fresh Produce Association of the Americas’ Spring Policy Summit, here.

Raúl Urteaga, general coordinator for international affairs for SAGARPA, which is the Mexican department of agriculture, was a panelist along with Kenneth Smith of the Economic Secretariat of the Mexican Embassy.Raúl Urteaga

Urteaga noted that Mexican vegetable production increased by 76 percent between 2005 and 2014, while fruit production increased 125 percent during the same period. In 2015, Mexican agri-food and fisheries exports had a value of $26.6 billion.

The United States receives 80.1 percent of Mexico’s agri-food exports. Canada is the second-largest global food customer for Mexico, receiving 1.9 percent of exports. Guatemala and Venezuela are the only other individual countries to receive more than 1 percent of Mexico’s food exports.

Mexico is one of the 12 countries involved in the Trans-Pacific Partnership Agreement. Urteaga said, “TPP comprises a market of nearly 800 million people and one third of the world gross domestic product and world trade.”

TPP negotiations concluded in October, and Congressional ratification is pending by all member countries.

“For Mexico, the outcome of this negotiation was positive,” Urteaga said. “Sensitivities were met according to private sector interests, meanwhile, better market access was gained.”

The other 11 countries that are part of the TPP are Australia, Brunei Darussalam, Canada, Chile, United States, Japan, Malaysia, New Zealand, Peru, Singapore and Vietnam.

When finalized, the treaty will give Mexican exporters six new markets: Australia, Brunei Darussalam, Canada, New Zealand, Singapore and Vietnam. Canada is on the list because of Mexico’s new market access for sugar, poultry, eggs and dairy, which were excluded from the 22-year-old North American Free Trade Agreement.

Almost all fruit and vegetable trade will be duty-free as TPP comes into force. A long list of Mexican fruits and vegetables have new opportunities in Asian markets, Urteaga noted.

Mexico will have improved access China’s interior regions because of a new direct air service from Guadalajara that will go into place this September. Urteaga said that this flight will be particularly attractive to berry producers in central Mexico.  

“The next big step” in the development of Mexican food exports will be a greater emphasis on producing value-added food products, Urteaga said.