Mexico and Canadian trade is on the rise, as the Mexican food sector prepares for a big jump in demand.
The Canadian food industry has been booming for the past several years thanks to a booming export sector and strong food safety legislation.
With the country’s economy on the mend and the world looking for food, there are more than $20 billion worth of Canadian goods being exported to Mexico.
The food industry, however, has struggled in recent years, with a number of scandals involving tainted and contaminated food.
“We’ve had the same problems for 20 years.
They don’t want to do anything about it,” said Jose Luis Lopez, president of the Association of Mexican Food Industries (AMIF).
He said some Mexican farmers are losing tens of millions of dollars in sales because of the contamination issues.
The Mexico-Canada trade is expected to grow by 40 per cent over the next decade.
Mexico has the world’s third-largest food industry and is the third-most-valued country in the world behind the United States and China.
Mexico imports more than 80 per cent of its food, according to a 2015 report by the UN Food and Agriculture Organization.
But the Canadian food sector has struggled to stay afloat, and many of its competitors are already moving their operations overseas.
Mexican companies are investing in the Canadian market with a focus on agricultural commodities such as corn, soybeans, and rice.
The sector is also growing faster than Mexico, with more than 300 food companies operating in Canada, according the Canada-Mexico Chamber of Commerce.
“The Canadian food trade is growing very rapidly.
We are getting about three or four times more imports from Canada than we are from Mexico,” said Carlos Dominguez, CEO of the Canadian Federation of Independent Businesses.
“I think it’s a good thing for the Canadian economy, and I think it will grow even more in the future.”
Dominguez added that Mexico has a very strong food supply chain, with over 400,000 producers, with an annual capacity of almost 40 million tonnes.
“Mexican farmers are really struggling to find a market for their food, and they need the Canadian industry to help them out,” he said.
The government of Mexico recently announced a package of new regulations aimed at improving food safety.
The measures include a ban on labelling and labeling equipment that can be used for contamination testing.
But Lopez said many Mexican farmers still can’t afford to purchase lab equipment and have to pay $4,000 for the test.
The AMIF says the government of Canada has not been successful in meeting its promises.
“It’s not a simple matter of money and regulations, because the market is so big in Mexico.
We need to do a lot more than just these rules and regulations,” Lopez said.