USMCA Spurred 59% Growth in U.S. Dairy Exports to Mexico

During this period, a significant portion of dairy exports, including nonfat dry milk (NDM) and cheese, went to Mexico, making the country a key customer for U.S. dairy products.

The positive export momentum is expected to continue through 2024, despite challenges such as the fluctuations in the Mexican peso that could reduce purchasing power. However, the proximity to Mexico and the benefits of the USMCA make the market resilient for U.S. dairy producers.

The key provisions of the USMCA, such as tariff reductions, expanded market access, and regulatory harmonization, have allowed U.S. dairy exporters to strengthen their position in the Mexican market while also opening up new opportunities to export to Canada. These factors will be important drivers of continued export growth in the coming years.

U.S. dairy exports to Mexico increased 59% from 2014 to 2023. The USMCA played a key role in expanding market access and reducing tariffs, facilitating export growth.

Mexico is the largest consumer of American cheese, with its share of exports increasing by 80%. The fluctuations in the peso exchange rate may create temporary setbacks, but the strategic advantages remain.

With these changes in trade relations, American dairy producers have new opportunities to grow in the Mexican market, and these prospects promise a positive future for the sector.