MEXICO IS TO BE CAUTIOUS ABOUT THE RENEGOTIATION OF NAFTA: CÉSAR QUESADA

    • There is an increase in dependency of the Mexican poultry industry on the US market.
    • SAGARPA- SENASICA shall expedite protocols to access other markets.

    Mexico City, January 31st, 2017. Mexico shall proceed cautiously about the imminent renegotiation of the North America Free Trade Agreement, since any modification to the provisions may generate significant social and economic repercussions not only on the Mexican poultry industry, but on consumers, said Cesar Quesada Macias, President of the Unión Nacional de Avicultores.

    After analyzing the meaning of NAFTA for the poultry industry, Quesada Macias, explained that the sector largely depends on US inputs for its development, as the case of feed grains such as corn, oil seed meal, sorghum, and seed stock, breeding stock, and reproduction birds.

    He said that unfortunately in the case of feed grains, this dependency is increasing, since domestic production does not meet the industry’s needs, and on the contrary, it has maintained its sustained growth as usual.

    According to an analysis by the Unión Nacional de Avicultores, in 2010, the importation of yellow corn by the Mexican animal agricultural sector amounted to 7’270,912 tons. This volume reached 10’835,589 tons in October, 2016. In accordance to the data for 2010, the imported volume of meal and oilseeds reached 888,007 tons and in October, 2016, it reached 1’802,291 tons. “Out of the total amounts mentioned, 50% account for imports made by the poultry industry alone”, the document indicates.

    Derived from the analysis, an example was given: in the case of seed stock, the situation is similar –in 2010, hatching eggs imports were 6,203 tons; and the volume by October, 2016 reached 35,830 tons.

    In this regard, the entrepreneur said that NAFTA has been beneficial for the industry because it is providing access to the necessary inputs for it.

    He urged the authorities of the Ministry of Economy to consider the view point of poultry producers, and in particular that of UNA’s, at the time of making proposals and counterproposals in the possible negotiations with the US authorities.

    He reminded that NAFTA, in the poultry chapter, only includes Mexico and the US; since Canada excluded its poultry sector from the beginning of the trade agreement.

    In this regard, Quesada said that at the entrepreneurial level, the Mexican and US poultry industries have worked jointly though a bilateral body known as the NAFTA Egg and Poultry Partnership (NEPP).

    He indicated that the NEPP is a collaboration and joint work instrument between representatives of UNA and USAPEEC. Additionally, it has been consolidated as a forum where both industries discus mutual interest issues.

    “Also, the NEPP is a clear example of the understanding and coordinated work between both industries, with foundations on communication and an ongoing and transparent dialogue, as well as mutual trust”, he indicated.

    NEPP has also been able to gather and establish working groups among high-level officials of the US and Mexican Governments.

    Domestic Markets

    Given the situation prevailing in the international trade policies being implemented by the US Government, it is urgent for Mexico to increase its possibilities and access different markets in Europe and South America, such as: Brazil and Argentina (regarding grains and oilseeds), for the provision of inputs for the Mexican industry, Quesada indicated.

    “The Mexican Ministry of Agriculture, through SENASICA, shall establish an immediate action plan to be used at any time by the Mexican poultry companies, and not depending fully on the US supply”, he said.

    Finally, he reaffirmed the commitment of the domestic poultry industry to support, as always, the growth and strengthening of Mexico, by producing food that generate wellbeing in the population, as it is the case of chicken, eggs and turkey, he concluded.

 

 

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