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Mexico’s agriculture industry is one of the countries longest-running and strongest motors for economic activity.
Under the North American Free Trade Agreement (NAFTA), Mexico eliminated all tariffs and quantitative restrictions on agricultural goods exported in the region and strengthened scientific ties to eradicate diseases and pests, conduct research and enhance conservation. The U.S.-Mexico-Canada Agreement (USMCA) further strengthens the region’s highly productive and integrated agricultural relationship to create new export opportunities for Mexican agriculture. In fact, 78% of Mexico's agricultural exports now go to the United States, predominantly fruit, vegetables, live cattle and coffee.
The Mexican government has pushed for growth in the industry by targeting various technical developments, including water distribution and irrigation systems, genetic enhancement of livestock, tractor purchase and repair programmes, and hybrid seed exchange for corn growers.
Recently, there have been concerns on multiple fronts regarding Mexican officials undertaking measures that disrupt trade in the region. For example, a presidential decree published in December 2020 fuels a “native corn” campaign with the stated objective of eliminating corn imported from the U.S. Additionally, Mexico has informed U.S. exporters that it would begin requiring all U.S. organic exports to Mexico to become certified to Mexico’s organic standards. There are concerns that Mexico is impeding the review and approval processes for biotechnology applications, which restricts farmers’ access to new technologies and affects exports for biotech products. Finally, there are new labeling requirements under NOM-051 that represent another layer of complications for imports in order to be sold to final consumers.
Nexus is here to help companies succeed in Mexico’s agriculture, food, and beverage sectors. With Nexus, producers comply with international safety and process standards, an IMMEX certification, and skilled workforce. Our team of expert consultants guides your company in understanding the complex regulatory landscape and ensures that your operations comply accordingly through legal and normative cases, customs and trade procedures, and preventive audits. Nexus is also able to support you by devising institutional relation strategies to connect your company with key actors by analyzing the risks involved in your investment, as well as comply with intellectual property standards, and implement communications and marketing strategies to grow your presence in Mexico.
Furthermore, companies work with Nexus to make their processes more efficient with the latest software and hardware technologies, and implement energy solutions that reduce utilities costs by up to 50%.
