While the new administration under U.S. President Donald Trump is casting a shadow over U.S.-Mexico relations, the U.S. dairy industry leaders are eager to emphasize their intention to keep in good terms with their counterparts of the U.S.’ top export market.
Tom Vilsack, president and CEO of the U.S. Dairy Export Council who served as the U.S. Secretary of Agriculture for eight years until January, visited Mexico earlier this week, heading a delegation of U.S. dairy industry officials.
In addressing the National Dairy Forum, an annual gathering of Mexican dairy farmers organized by the Mexican Federation of Milk Producers (Femeleche) held in Mexico City on March 15, Vilsack stressed the U.S. industry’s continued commitment to their partnership with the Mexican industry and consumers.
“One change is a new administration in Washington with new ideas about trade policy,” Vilsack said. “So what hasn’t changed? Mexico remains a key strategic ally and a critical economic partner for the United States. The U.S. dairy industry highly values this partnership.”
Vilsack and other U.S. dairy industry leaders said both the U.S. and Mexican industries have benefited from growing dairy product consumption in Mexico and assured their Mexican counterparts that U.S. will continue to be their most reliable partner.
The reason behind the U.S. industry’s eagerness is the fact that the Mexican market is their biggest overseas customer. According to the U.S. Dairy Export Council, exports to Mexico accounts for a quarter of the total U.S. exports of dairy products. This is said to be equivalent to an amount of raw milk produced by 1,500 average U.S. dairy farms.
The U.S. industry is increasingly concerned over trade relations with Mexico, after Trump released a plan to build a wall between the two nations. Mexican people’s discontent with the U.S. is rising, and there are voices within Mexico suggesting purchasing agricultural products, including corn, from countries other than the U.S. to counter Trump’s protectionist policies, some U.S. media reported.
They are also worried about the Trump administration’s pledge to renegotiate the North American Free Trade Agreement (NAFTA). Since export barriers were scrapped under NAFTA which came into force in 1994, U.S. dairy exports to Mexico have surged from $250 million to $1.2 billion, according to the council. Meanwhile, Mexico is likely to begin negotiating with the European Union and New Zealand, which are enthusiastic about exporting dairy products. Revamping NAFTA could put a brake on U.S. dairy exports to Mexico, depending on the outcome of the renegotiations.
The U.S. dairy industry, which had been focusing on the domestic market in the past, has become increasingly dependent on exports since the beginning of the 21st century. Amid growing uncertainties over the U.S. agricultural trade policies under the Trump administration, the industry has made clear its intention to continue focusing on overseas markets by appointing the former secretary of agriculture to lead the council.