Mexico is one of the largest exporters of corn. Nevertheless, it also imports almost half of what it consumes. In a world of skyrocketing food prices, this dependency is becoming a national security problem.
In order to reduce pressure over rising food prices, President Felipe Calderon has launched an initiative that promises to improve the situation of farmers and consumers. The initiative is composed of three elements. The first element will facilitate access to basic foods produced in the international markets. The second component attempts to enhance production and productivity in the agricultural sector. Finally, the initiative will try to protect the income of poor families against inflation. In May 26th the Mexican government cut food import tariffs. This measure will immediately reduce the costs of importing corn, wheat, and rice. Additionally, the government agreed to provide a monthly cash payment to some of its poorest citizens.
These measures will reduce some of the pressure over food prices in Mexico, but only temporarily. The program launched by the Presidency does not seem to address structural problems in the Mexican country side such as migration to urban areas‚ or to the US for that case. The structural problems are so severe that the Minister of Agriculture has stated that Mexico will not be able to produce enough basic foods for the country's population. Thus the importance of reducing food import tariffs.
These problems fill the Mexican headlines almost 15 years after the North America Free Trade Agreement (NAFTA) entered into force. In the early 1990s, several groups and organizations warned that Mexico would not be able to compete with its partners and that agriculture would be the economic sector most affected by trade. It seems that the Mexican country side‚ and with it the Mexican population‚ has been not only affected by trade in North America, but also by the powerful trends of a global economy. Hopefully, Mexico will also learn how to benefit from it.
