A Top Export Prospect for Colombia
In 2010, U.S. agricultural exports to Canada reached a record $16.9 billion. U.S. agricultural exports to Canada accounted for 14.5 percent of total U.S. food and agricultural product exports of $115.8 billion. American products accounted for almost 62 percent of total Canadian agricultural imports in 2010.
During 2010 a number of consumer oriented agricultural categories posted record sales to Canada. The top 5 categories are fresh vegetables ($1.6 billion), fresh fruit ($1.5 billion), snack foods ($1.5 billion), red meats ($1.47 billion), processed fruits and vegetables ($1 billion). Combined items in these categories accounted for more than half of total U.S. exports of consumer-oriented agricultural products to Canada.
U.S. fish and seafood exports to Canada reached $797 million in 2010. Despite being a major producer and world exporter of forest products, Canadian imports of U.S. forest products reached $2.1 billion in 2010. Combined, total U.S. farm, fish and forestry product exports to Canada reached a record $19.8 billion in 2010. Total bilateral agricultural trade between the U.S. and Canada reached $43.8 billion in 2010, more than $120 million per day.
Under the tariff elimination provisions of the North American Free Trade Agreement (NAFTA), the majority of U.S. agricultural products have entered Canada duty-free since January 1, 1998. On December 4, 1998 the United States and Canada signed a Record of Understanding, an agreement to further open Canadian markets to U.S. farm and ranch products. Some tangible benefits of the agreement are already accruing to the U.S. agricultural industry.
Canadian consumers enjoy a high disposable income, coupled with a growing interest in global cuisine and the country’s wide ethnic diversity that provides broad food marketing opportunities. Canada’s grocery product and foodservice trade have been quick to seize opportunities under NAFTA by expanding their geographical sourcing area to include the
United States. The familiarity and confidence in Canadian based U.S. chains (hotels, restaurants and fast food) have helped to increase the demand for high value U.S. foods. Since U.S. food products match Canadian tastes and expectations there have been significant gains in the Canadian market for U.S. consumer ready foods.
On the basis of current market trends and conditions, the following sectors are considered to be best prospects for U.S. exports of food and agricultural products to Canada: