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Mexico's Agriculture Development UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENTM ENT MEXICO’S AGRICULTURAL DEVELOPMENT: PPerspectiveserspectives andand OOutlookutlook U N I T E D N A T I O N S C O N F E R E N C E O N T R A D E A N D D E V E L O P M E N T MEXICO’S AGRICULTURAL DEVELOPMENT: Perspectives and Outlook New York and Geneva 2014 ii MEXICO’S AGRICULTURAL DEVELOPMENT: PERSPECTIVES AND OUTLOOK NOTE The designations employed and the presentation of the material do not imply the expression of any opinion on the part of the United Nations concerning the legal status of any country, territory, city or area, or of authorities or concerning the delimitation of its frontiers or boundaries. Symbols of the United Nations documents are composed of capital letters combined with figures. Mention of such a symbol indicates a reference to a United Nations document. Material in this publication may be freely quoted or reprinted, but acknowledgement is requested, together with a copy of the publication containing the quotation or reprint to be sent to the UNCTAD secretariat at: Palais des Nations, CH 1211 Geneva 10, Switzerland. This publication has not been formally edited. UNCTAD/DITC/TNCD/2012/2/Rev.1 Copyright © United Nations, 2014 All rights reserved ACKNOWLEDGEMENTS iii ACKNOWLEDGEMENTS Mexico’s Agricultural Development: Perspectives and Outlook was prepared by a team from the Division on International Trade in Goods and Services, and Commodities, UNCTAD, led by Guillermo Valles, Director, and the Special Unit on Commodities, UNCTAD, led by Samuel Gayi, Head. Mina Mashayekhi, Head, Trade Negotiations and Commercial Diplomacy Branch, conceptualized the outlook and led and coordinated the first phase of its preparation. The team comprised Lucas Assunção, Mariona Cusi, Junior Roy Davis, Leonardo Garcia, Martin Halle, Alexandra Laurent, Mina Mashayekhi, Graham Mott, Bonapas Onguglo, Henrique Pacini, Ralf Peters, Hassan Qaqaya, Luisa Rodriguez, Claudia Roethlisberger, Ulla Schwager, Amos Taipore, Kris Terauds, Aimable Uwizeye-Mapendano and Yan Zhang. The authors express their gratitude to Maria Susana Arano, Guillermo Del Bosque Macias, Renata Grisoli, Matt Hamilton, Robert Hamwey, Dilip Khatiwada, Lalen Lleander, Tomas Lönnqvist, Alejandra Maruri, Omar Masera, Semida Silveira, Daniel de la Torre Ugarte, Ailton Vale, Adolfo Valente Marcelo, David Vanzetti and Fernanda Vilela. The study was supported by the Permanent Mission of Mexico to the United Nations and other International Organizations in Geneva, Switzerland, under the supervision of Juan José Gómez Camacho, Ambassador and Permanent Representative, and Enrique Domínguez Lucero, Minister of Agriculture. They provided valuable comments and coordinated the interviews with stakeholders within Mexico’s agricultural sector including agricultural producers, various Mexican government agencies and universities, together with Mexico’s Ministry of Agriculture, Livestock, Rural Development, Fisheries and Food (SAGARPA), the special involvement of the Agrifood and Fishery Information Service (SIAP) and the help of Judith Arrieta Marcia and Hugo Rodríguez Nicolat for interaction and follow-up of the study process from the beginning. The interviewees were Héctor Gabriel Barreda Neder, Luis Bueno Torio, José Cacho Ribeiro, Oswaldo Cházaro Montalvo, Juan Cortina Gallardo, Isabel Cruz Hernández, Pedro Díaz Hartz, Rigoberto Espinoza Macías, Jorge García de la Cadena, Vicente Gómez Cobo, Cruz López Aguilar, Gustavo Adolfo Merino Juarez, José Luis Meza Villarreal, Heladio Ramírez López, Víctor Reyes Banks, Rafael Ruiz Moreno, Carlos Salazar Arriaga, Víctor Suárez Carrera and Rafael Trueta Santiago. Furthermore, special credit goes to the many agricultural producers in Mexico who answered questionnaires providing information for this study. Laura Moresino-Borini designed the cover and performed the desktop publishing of the publication. CONTENTS v CONTENTS Note ..................................................................................................................................................................ii Acknowledgements.......................................................................................................................................... iii Abbreviations and Accronyms ..........................................................................................................................xi Executive Summary.........................................................................................................................................xv INTRODUCTION TO OUTLOOK................................................................................................................xxiii CHAPTER I: AGRICULTURE TRADE POLICY ISSUES FOR MEXICO........................................................ 1 A. INTRODUCTION ......................................................................................................................................... 2 B. AGRICULTURAL TRADE............................................................................................................................. 2 1. Aggregate agricultural trade.................................................................................................................. 2 2. Product-specific trade.......................................................................................................................... 6 3. Self-sufficiency...................................................................................................................................... 8 4. Employment ......................................................................................................................................... 9 C. TRADE POLICY......................................................................................................................................... 12 1. Multilateral trade agreement................................................................................................................ 12 2. Regional trade agreements ................................................................................................................. 14 3. Current domestic support policies ...................................................................................................... 16 4. WTO Doha Round Negotiations.......................................................................................................... 20 D. IMPACT OF TECHNICAL STANDARDS ON THE AGRICULTURAL SECTOR IN MEXICO........................... 22 1. Standards and other measures .......................................................................................................... 22 2. Standards and other measures faced by Mexico’s exports.................................................................. 23 3. Measures applied by Mexico on imports............................................................................................. 27 4. Sources of concern for Mexico regarding standards from the domestic and import perspective.......... 28 E. LINKING TRADE, POLICY AND DEVELOPMENT IN AGRICULTURE ......................................................... 29 F. FINDINGS AND POLICY RECOMMENDATIONS ....................................................................................... 34 REFERENCES................................................................................................................................................ 37 ANNEXES....................................................................................................................................................... 39 CHAPTER II: AGRICULTURE COMMODITY POLICY REVIEW FOR MEXICO......................................... 45 A. INTRODUCTION ....................................................................................................................................... 46 B. OVERVIEW: MEXICO’S RURAL AND AGRICULTURAL DEVELOPMENT POLICY...................................... 46 1. Theoretical framework........................................................................................................................ 47 2. The rural sector................................................................................................................................... 47 3. Agricultural and rural development programmes and institutions......................................................... 50 4. Rural finance....................................................................................................................................... 53 vi MEXICO’S AGRICULTURAL DEVELOPMENT: PERSPECTIVES AND OUTLOOK C. AGRICULTURAL COMMODITIES: COMPETITIVENESS AND VALUE CHAIN ANALYSIS ........................... 59 1. Background........................................................................................................................................ 59 2. Agricultural and food products of strategic importance to Mexico ....................................................... 60 3. Technologies and competitiveness of selected agrifood production and trade .................................................... 70 4. Value chain analysis ............................................................................................................................ 76 5. Small-scale farmer participation in high-value agriculture and food chains........................................... 88 6. Policy recommendations: Enhancing competitiveness and integration into global agrifood value chains.......................................................................................................................................
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