The State of Mexican Exports and the Challenge of Tariffs

Mexican exports have been a key pillar of the national economy, especially in the agri-food  sector. However, the country’s heavy dependence on traditional markets like the United States is becoming a challenge due to increasing trade uncertainty. The recent 25% tariff hike on  agricultural products, along with stricter regulations in international markets, highlights the  urgent need to diversify export destinations and expand the range of exportable products. 

The United States remains Mexico’s primary trading partner, absorbing nearly 80% of its agri-food exports. But what happens when trade relations face obstacles, such as higher tariffs, stricter  inspections, or changes in import policies? Right now, avocado and berry producers are  struggling with these challenges, making it clear that finding new alternatives is more urgent than  ever. 

Global Trends in Agri-Food Trade 

While Mexico faces challenges in its trade relationship with the United States, countries like Peru and  Chile have successfully diversified their exports. In recent years, they have positioned  themselves in Asian and European markets with high-value-added products. Chile, for example,  has strengthened its presence in China with its wines, cherries, and blueberries, thanks to  strategic trade agreements. Peru, on the other hand, has found opportunities for growth in Europe and Asia with grapes and avocados. 

What lessons can Mexico learn from these countries? First, prioritizing free trade agreements  with other regions. While Mexico has trade agreements with over 50 countries, its focus has  primarily been on manufacturing. It’s time to apply these advantages to the agricultural sector and tap into markets in Asia, the Middle East, and Africa. 

Mexico is a country with enviable biodiversity and a climate that allows the production of a wide  variety of crops. However, its export focus remains limited to flagship products, such as  avocados, tomatoes, berries, and tequila. If we truly want to diversify, now is the time to explore  other high-potential options in international markets. 

Promising Products for Export Diversification 

• Exotic fruits: Products like Dragon Fruit (Pitahaya), Soursop (Guanábana), and Passion  Fruit (Maracuyá) are in growing demand in international markets due to their nutritional  properties and use in gourmet cuisine. The rise of healthy and high-end cuisine has  increased demand for these high-value fruits, especially in Europe and Asia. 

• Superfoods: Crops such as chia, amaranth, and nopal are recognized for their health  benefits and could find strong markets among consumers seeking organic and nutritious  foods. In countries like the United States and Germany, interest in superfoods has boosted their sales in health food stores and supplement shops. 

• Medicinal and aromatic plants: Plants like moringa, mexican oregano, and damiana  could create opportunities in the pharmaceutical and cosmetics industries. These species have been used in traditional Mexican medicine and are now attracting interest from companies looking for natural ingredients with therapeutic properties. 

• Andean grains: Although native to South America, grains such as quinoa and kiwicha  could be adapted to certain regions of Mexico, capitalizing on the global trend toward  ancestral and nutrient-rich grains. Their high protein and essential amino acid content  make them attractive in the health food market. 

• Cacao and premium chocolate: Mexican cacao has a millennia-old history, but its production has been overshadowed by countries like Côte d’Ivoire and Ghana. However,  demand for fine cacao and artisanal chocolate is increasing, particularly in European  markets. Countries like Switzerland and France seek fair-trade cacao with sustainable  practices, offering an opportunity for small and medium-sized Mexican producers. 

• Spices and dried chiles: Mexico is home to a vast variety of chiles and spices with great  potential in the global market. Habanero, guajillo, and pasilla chiles are essential  ingredients in international cuisine, yet their export potential remains largely untapped.  Consumers in Europe and Asia are increasingly interested in authentic flavors and  products with a denomination of origin, which could give Mexico a competitive  advantage. 

• Edible insects: Although it may seem like a niche market, entomophagy (the  consumption of insects) is gaining popularity in countries like the United States, Canada, and parts  of Europe. Grasshoppers, maguey worms, and escamoles are not only rich in protein but  are also considered a sustainable alternative to traditional meat. Some startups are already  exploring this market, but there is still significant room for growth. 

• Avocados: Avocados have been a success story for Mexico, but their dependence on the  US market is a growing risk. Increasing demand in Asia, particularly in China and Japan, could be a viable alternative. However, this requires a strategic approach, from  trade negotiations to improvements in logistics and phytosanitary certifications. 

• Berries: Berries have experienced significant growth, but competition with Peru is  becoming increasingly fierce. The key to maintaining competitiveness lies in  differentiation: exclusive varieties, organic certifications, and strong branding strategies can help solidify markets in Europe and the Middle East. 

How Can Mexican Producers Prepare? 

Diversifying exports is not just about finding new products or markets, it’s also about preparing producers to compete in a global environment. Here are some key strategies: 

• International certifications: Many markets require certifications such as GlobalG.A.P.,  organic, or fair trade. Obtaining these certifications can open doors in Europe and Asia. 

• Improving logistics and cold chain: To ensure products arrive in optimal conditions in  distant destinations, investing in storage and transportation infrastructure is essential. 

• Innovation and value-added products: Instead of exporting only raw materials, Mexico  should focus on high-value-added products, such as healthy fruit-based snacks or premium chocolates. 

• Exploring trade agreements: Mexico has trade agreements with Japan, the European  Union, and some Middle Eastern countries. Leveraging these agreements could facilitate  access to new markets.

The Time to Diversify Is Now 

The increase in tariffs and the uncertainty in US-Mexico trade relations are clear signs that  Mexico cannot continue to rely on a single market. Countries like Chile and Peru have shown  that diversification is possible with well-defined strategies and smart trade agreements. Mexico  has the potential to replicate and even improve these models if it invests in new crops, international certifications, and a broader export vision. 

The question is not whether we should diversify, but how much longer we can afford not to. The  future of Mexican exports depends on the agricultural sector’s ability to adapt and its willingness to explore new opportunities in an increasingly competitive world.