By LINDA McGURK

Indiana Correspondent

INDIANAPOLIS, Ind. — Lt. Gov. Becky Skillman is hoping to give Indiana agricultural exports a boost by leading a trade mission to Mexico in February. Skillman will be accompanied on the trip by about 30 representatives from universities, farm groups, agribusiness and various food sectors.

“Previous trade missions have been more successful than we have anticipated and I expect nothing less of this one,” Skillman stated in a press release.

She and Gov. Mitch Daniels have led six trade missions in the past two years, but this will be the first to Mexico. The main focus of the trip will be on hardwood, grains, red meat and other food products, according to Skillman’s spokesperson Angela Coats.

“Mexico is the number-two export destination for agricultural products from Indiana and the U.S., so it’s important for us to go down there and build relationships,” she said. “The goal is to promote our products, and hopefully make some sales.”

Coarse grains, red meats and soybeans make up 30 percent of American exports to Mexico. Matt Harrod, assistant director of research and policy at the Indiana State Department of Agriculture, said Skillman’s trade mission will promote soybean exports, even though Indiana’s bean supply will tighten due to the opening of the Louis Dreyfus biodiesel plant in Claypool.

“Even with the Claypool facility … there’s still a need for raw commodity exports,” he said. “One of the byproducts from the Claypool plant is soybean meal, which can be exported, and dry distillers grain, which looks like it will have strong export potential.”
Harrod said the delegation also will promote lesser-known agricultural exports from Indiana.

“I think there’s strong potential for value-added products, like processed and packaged food. An important part of this trade mission will be to explore those opportunities and see what kind of interest there is,” he said.

The group will leave for Mexico on Feb. 4 and return to Indiana on Feb. 8, but the specific agenda has yet to be finalized. During their stay, the delegates will meet with government officials and business representatives in Mexico City, Veracruz and Pachuca, the capital of the Mexican state Hidalgo.

Representatives from universities in Indiana will also meet with their counterparts in Mexico, in an attempt to develop stronger ties and create exchange programs for students and faculty.

Coincidentally, Skillman’s trip follows the full implementation of the North American Free Trade Agreement (NAFTA) on Jan. 1. On this date, Mexico lifted its last trade restrictions on certain agricultural products, such as corn, beans, sugar and high-fructose corn syrup, and agricultural trade between the two countries is now completely duty-free.

“I think (the abolished tariffs) will make all ag sectors that are strong in Indiana even more competitive in Mexico, from the grains and pork to the value-added products,” Harrod said.

Since NAFTA was enacted in 1994, two-way trade of agricultural products between the United States and Mexico has increased from $5.9 billion to $24 billion, according to USDA’s Foreign Agricultural Service. U.S. food and agricultural exports to Mexico have increased by nearly 10 percent per year since 2002.

“The gradual implementation of NAFTA has been a strong force as trade barriers have been reduced over time, and there’s a growing appetite in Mexico for American products,” explained Harrod.

Mexican farm activists recently protested the now-unrestricted imports of U.S. corn, claiming they can’t compete with the subsidized American crop. But Mexican President Felipe Calderon was quick to defend the agreement, arguing it has benefited Mexican consumers.

Coats didn’t expect any negative fallout from the protests and believes Skillman’s delegation will be well-received. “I’ve heard only good things so far from the Mexicans about our trade mission. Nobody has made any negative comments,” she said.