U.S. exports are forecast up 5 percent on stronger demand from Mexico and the Philippines. Over the past decade, total exports have grown almost 50 percent. Mexico is a key market for the United States. In March 2009, Mexico imposed a 20 percent retaliatory tariff on U.S. frozen fries after the trucking dispute, which reduced competitiveness and accelerated the shift to Canadian products. However, in October 2011, the issue was resolved and the tariff was removed, which should boost U.S. shipments and make U.S. potatoes more competitive.
U.S. Imports Supplied Primarily by Canada
The United States is the world’s largest importer, with almost all supplied by Canada. Imports are forecast up 4 percent to 740,000 metric tons (MT). Major companies have plants in both countries and are able to shift raw and finished supplies fairly easily, depending on exchange rates and supplies.