Canada and Mexico reach agreement to allow Canadian fresh potato exports

Canadian potatoes could soon reach the Mexican market following a new agreement between Canadian and Mexican authorities. The Canadian Food Inspection Agency (CFIA) announced this week that it has reached an agreement with its Mexican counterpart allowing fresh Canadian potatoes to be exported to Mexico for consumption or processing.
 

New market opportunity for Canadian potatoes

The agreement follows trade missions led by federal Agriculture and Agri-Food Minister Heath MacDonald, including visits to Mexico in October and February.

Heath MacDonald, Minister of Agriculture and Agri-Food Canada:

"All we asked as Canadians is to have the same access as the U.S. has, with one caveat — and that is ensuring that we had access to the seaway."

He added that diversifying export markets is critical for Canadian producers and that the agreement could bring significant benefits to the potato sector. The CFIA said it will work closely with the potato industry in the coming months to implement the agreement, with shipments potentially starting as early as this fall. 
 

Industry welcomes market diversification

For Canadian producers, the opening of the Mexican market represents an important opportunity.

Ray Keenan, CEO of Rollo Bay Holdings:

"It's a project that's been worked on now for about the last two and a half or three years."

Keenan was part of the delegation that travelled to Mexico last year to explore export opportunities. He said his company could potentially ship several containers of potatoes to Mexico each month once logistics are finalized.

Ray Keenan:

"We have something to offer, so we need to spread our markets out to where those potatoes are needed most."

Mexico seen as attractive export destination

Canada will mostly be shipping russet potatoes to Mexico. (Courtesy:CBC)

Prince Edward Island already exports potatoes to about 20 countries, but Mexico’s large population makes it a particularly attractive market, according to industry representatives.

Krista Shaw, Director of Stakeholder Relations at the P.E.I. Potato Board:

"I think partially because it's part of CUSMA and anything that we can ship to where we can have tariff-free entry is of the utmost importance for our exporters here."

Canada has not exported potatoes to Mexico in recent years, although Mexico imports potatoes from the United States. 
 

Trade uncertainty drives new export strategies

Potatoes are currently covered under the Canada–U.S.–Mexico Agreement (CUSMA), which is scheduled for review this year.

Matt Hemphill, Executive Director of Potatoes New Brunswick:

"When you get someone as inconsistent as the current administration, you obviously start looking at other markets in the event that that all comes to a screeching halt."

New Brunswick currently exports around USD 2 billion worth of table, seed and processing potatoes to the United States each year.

Matt Hemphill:

"Other countries are looking to do business with countries other than the U.S., quite frankly. So it was kind of perfect timing for us to look at Mexico."

The next steps include finalizing prices and logistics before shipments begin.

Matt Hemphill:

"If we can continue to feed that market with a quality New Brunswick potato, then that helps take some of the stress and strain off some of this U.S. business."

Canadian growers interested in exporting potatoes to Mexico are encouraged to contact their local CFIA office for information on the next steps.