Jorge Esteve, who was recently elected as the new president of Mexico's National Agricultural Council (CNA), spoke at this year's Mexican table grapes Spring Summit in San Diego, California, about the country's current political and economic state. 

Esteve said agriculture in the country has been affected by droughts, insecurity, and competition with other origins. 

He explained that 80% of Mexican agriculture exports are shipped to the U.S., making it the country's leading trading partner. 

"Agriculture is incredibly important, and I think Americans understand this better than Mexicans, because, based on surveys, people forget about where the food they eat comes from," he said. 

Agriculture in Mexico continues to provide more jobs every year, and returns for farmers have been increasing, with inflation dropping in the country. 

Challenges for Mexican agriculture

Esteve referred to the challenges posed by drought, which affects various regions of the country. 

"If we look at climate trends, they show an increasingly arid Mexico," he said. "We have to work on fixing the infrastructure and technifying the irrigation methods, which is a challenge but presents an opportunity for the sector."

Automation and efficient irrigation methods can reduce water usage by up to 80% and increase productivity in the fields, according to Esteve. 

Regarding security concerns, Esteve believed violence has decreased. However, this is because people are being forced to pay bribes. 

"Growers and exporters are paying bribes in the irrigation districts and transportation, which is a problem," he said. 

He was optimistic about the current administration in Mexico, saying that in six months, he had seen more results than in the past six years. 

"We have to win the battle against insecurity and corruption," he said. 

Global political stage 

Regarding global trade dynamics, Esteve recognized the growth of Chinese dominance on markets across the globe, stating that Trump's measures, whether one is in favor of them or not, are intended to protect the U.S. and address its significant trade deficit, as well as its debt. 

"China is being smart, thinking ahead, and sacrificing profits to position itself worldwide," he said. 

He gave the example of cars, saying that in Mexico, one out of every three cars that are sold is made in China. 

Jorge Esteve- CNA

U.S. economy

Mexico is the second country, after China, with the largest trade deficit with the U.S., which is why Esteve encourages Mexicans to purchase American products to reduce this deficit and prevent any measures that could impact trade between the two countries. 

For the same reason, he called on exporters to diversify their markets, especially considering the volatility of the U.S. market during this administration. 

"Dependence on this market makes us vulnerable," he said. 

Mexico imports significantly fewer products from the United States than it exports, with U.S. products representing only 40% of its imports. 

However, he says the latest decisions from the U.S. administration (excluding Mexico and Canada from reciprocal tariffs) demonstrate that they recognize the importance of the free trade agreement (NAFTA). 

"We are the most self-sufficient region in terms of agri-foods and all forms of energy, so our relationship is very important and the U.S. recognizes that," Esteve said. 

He also pointed out that the country needs to start thinking in the best interest of the region, being North America, and hopes that all countries can work together to push the region forward.

Phytosanitary concerns 

Esteve expressed concern about the resources allocated to the Mexican National Service of Health, Safety, and Agrifood Quality (SENASICA). 

He said the agencies' budget is being reduced, which is a problem because "health and safety are the heritage of Mexicans, as they help us be more productive and trustworthy."

Additionally, it can cause serious issues with trading partners and potentially disrupt future relationships.

Opportunities for Mexico

The president of CNA stated that the demand for food in Mexico will continue to grow, driven by a rising population, necessitating increased production to maintain a balance in the country. 

"Mexico is well-positioned to step ahead globally, with a good demographic location, weather, and growing practices," he said. 

He thinks overall, despite the political and economic instability in the market, Mexico has the potential to grow its various industries and introduce the production of new products. 

"Mexican grapes, for example, are very well positioned, so they could benefit from tariffs on other competing countries," he said. "It's important to remain united as an agricultural community, to defend our interests and promote the growth of our products."

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