USMCA unlocks US$3-billion investments for agribusinesses in Mexico, says CNA
Investments in the Mexican agricultural sector have begun to unravel, after the negotiation of the new United States-Mexico-Canada Agreement (USMCA).
In an interview with Forbes Mexico, Bosco De la Vega, president of the National Agricultural Council (CNA) explained that investments in the short and medium term will remain in the order of US$2.5 to US$3 billion per year, while the sector expects national growth of 4.6% and 11% in terms of exports.
He also celebrated the joint effort of the public and private sectors in the most important point of the negotiation for the sector: the withdrawal of the seasonality tariff clause.
“They wanted to tax us by season, product and area, which was going to be a chaos for Mexico’s successful food export industry,” he said.
He recalled that the best salaries paid by the agricultural industry are linked to exports, made up of 14% of formal Mexican employment and equivalent to 7 million people.
Finally, he said that, with negative rates on immigration for three consecutive years and water restrictions, as in California, more American and Canadian companies are coming to Mexico to form partnerships in crops and food processing plants.