ST. PAUL, Minn. — The North American Free Trade Agreement (NAFTA) was implemented in 1994 by Canada, Mexico, and the U.S., with a goal to eliminate barriers to trade and investment between the three North American countries.
In the years since NAFTA, Minnesota agricultural trade with Canada and Mexico has more than tripled, growing much more rapidly than Minnesota ag trade with the rest of the world (except China).
Minnesota agricultural exports to Canada and Mexico reached a combined total value of $1.6 billion in 2015 (latest data available):
- Mexico: $992 million or 15.8% market-share
- Canada: $589 million or 9.4% market-share
- Minnesota’s total ag exports to the world: $6.3 billion
Minnesota ag exports to Canada and Mexico generate an economic “multiplier effect” that benefits the entire state economy. Specifically, agricultural exports create economic activities in many other sectors, such as manufacturing, transportation, trade, services, finance, insurance, real estate, construction, and others.NAFTA-MN Ag Trade Impact
Total economic impacts of NAFTA-MN agricultural trade (estimated):
- Output impact: $4.7 billion
- Employment impact: 12,900 jobs
For more information on Minnesota agricultural exports, please contact Su Ye, 651-201-6384, su.ye@state.mn.us.
— Minnesota Department of Agriculture
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