Miller Magazine Issue: 134 February 2021

MexIco 70 MILLER / february 2021 With a population of almost 130 million, a rich cultur- al history and diversity, and abundant natural resources, Mexico is among the world's 15 largest economies in the world and the second-largest economy in Latin America. Aided by its proximity to the US market, the county has established itself as an important manufacturing and ex- port powerhouse. Latin American country has been on a reform path for several years, privatizing, deregulating, and cutting back the role of government. It has generally enjoyed stable economic growth since the 1990s, despite weakening in 2019 and a COVID-linked recession in 2020. It is heavily dependent on the American economic situation. Mexico is located in the southern portion of North America, bordering the southwestern United States from California to Texas. It has an area of 1,964,375 square kilometers—making it the third-largest nation in Latin America after Brazil and Argentina. Mexico is the most populous Spanish speaking nation in the world. Seventy-nine percent of its inhabitants live in urban areas. Ten percent of the population is consid- ered wealthy, and about 44 percent live in poverty. The remaining 46 percent of the population is considered middle class. It experiences great climatic variation owing to its considerable north-south extension and variations in el- evation. Mexico is well-suited to large-scale agricultural production with its large landmass and a diverse range of climates. It is the world’s 11th-largest agricultural and livestock producer, and the third-largest in Latin Ameri- ca. Mexico ranks among the world's largest producers of coffee, sugar, corn, oranges, avocados and limes. Cattle farming and fishing are also important activities in the food industry. Of the country’s total 60.8 million acres of arable land, 53.3 million acres are planted, with only 1.5 million acres using irrigation technologies. Although the COVID-19 pandemic created significant challenges, the agricultural sector has been one of the more privileged sectors in the country. The agricultural sector's contribution to employment in Mexico has been on a downward trend in recent years. In 2020, the sector represented 12.44 percent of em- ployment in the North American country, down from a share of over 13.9 percent in 2010. In contrast, the val- ue added by the agricultural sector to Mexico's GDP has continuously increased in the last decade. According to the latest data from the World Bank, agriculture account- ed for 3.38% of Mexico’s GDP in 2019. It has a large and diversified agricultural sector. Agricul- tural practices range from traditional techniques, such as slash-and-burn cultivation of indigenous plants for family subsistence, to the use of advanced technology and mar- keting in large-scale, capital-intensive export agriculture. The staple food crops are maize, wheat, sorghum, barley, rice, beans, and potatoes. The principal cash crops are coffee, cotton, sugarcane, fruit, and vegetables. Other important agricultural goods include beef, poultry, dairy products, and wood products. With President Andrés Manuel López Obrador tak- ing office in December 2018, Mexico shifted its focus domestically, promoting programs and incentives to en- hance both local small-scale production and consumption with a goal of becoming self-sufficient in core agricul- tural products. The agriculture programs focus primarily on providing support to marginalized and small farmers instead of larger commercial operations, with special em- phasis given to small pro- ducers in the southern and central states of Mexico. Due to logistical advan- tages and existing business relationships, the United States is Mexico’s prin- cipal agricultural trading partner, receiving almost USD 29 billion of Mexico’s total agricultural exports. And Mexico is the top destination for U.S. agri- cultural exports of corn, dairy products, poultry meat and eggs, sugar and sweeteners, distillers dried grains, and rice. However, Mexico actively looks for alternate sources of sup- ply. In recent years, com- petition emerged from the