Federal and provincial governments have renewed the contract of Canada’s border clearance representative in Mexico for another year.
It is a key step in Canada’s efforts to ensure the smooth flow of products into Mexico, a country that has become the fourth largest export destination for Canadian agri-food products.
Since it opened in 2001, the office has expedited more than 600 shipments of Canadian agricultural goods held up at the Mexican border, rescuing an estimated $10 million in lost sales.
“It has been very important for Canadian exporters,” said Alejandro Ruiz, commercial officer with the Canadian Embassy in Mexico.
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“Our border clearance representative has a very good relationship with the Mexican authorities located at the Laredo border, where most of our Canadian products pass through.”
The job belongs to Luis Pérez, who assists Canadian exporters in navigating their way through a maze of complex import regulations that are subject to frequent changes.
Each shipment to Mexico requires a set of accompanying documents that include a commercial invoice, North American Free Trade Agreement Certificate of Origin, packing list, bill of lading and sanitary certificates.
Pérez said a common problem is that Mexican importers don’t provide Canadian shippers with the proper document requirements. Another problem is that custom brokers wait until the last minute to do their jobs because they are too busy dealing with heavy volumes of incoming product.
Every week he handles shipments stalled at the border because of improper documentation or errors in labelling and packaging.
Pérez recently negotiated a deal to get a load of refrigerated meat and vegetable pasta across the border after a four-day delay by writing a letter to Mexican authorities promising to get the proper Canadian Food Inspection Agency certificates to them the following day.
That last-minute solution got the perishable shipment to the customer in the nick of time.
A better approach, especially for shippers who are new to the Mexican market, is to iron out the wrinkles ahead of time.
“We recommend exporters touch base with us before they ship their product,” Pérez said.
His office ensures all proper documentation is in place and that Mexican authorities have approved shipments before they are sent.
Cecil Werner plans to take advantage of that service. He is president of CanMar Grain Products Ltd., which is one month away from completing construction of a Regina processing plant designed to roast golden flax seed.
“The flax market in Mexico is a hot market right now. It’s a growing market,” Werner said.
He thinks CanMar can find a niche market in Mexico for roasted flax, which adds fibre and flavour when mixed with yogurt, ice cream and smoothies. However, it can be a tricky and confusing market to penetrate so he’s pleased to have the assistance of the border clearance representative.
“The rules are changing so often,” Werner said. “That’s another reason why we need to have somebody on top of things at all times.”
Pérez’s office is located at the border crossing at Laredo, Texas, and Nuevo Laredo, Mexico, where Canadian agricultural goods shipped by rail or truck via the United States enter the country of 103 million Spanish-speaking consumers.
With the NAFTA now in full effect, Mexico is becoming an increasingly important destination for Canadian food shipments.
In the first half of 2004, Canadian companies exported $577 million US worth of product to Mexico, a 108 percent improvement over the same period last year.
Much of the expansion can be attributed to the resumption of beef trade with Mexico after a temporary lapse because of the BSE crisis.
Exporters have shipped $172.3 million worth of beef in the first half of 2004 compared to less than half that amount in all of 2003. Beef is moving by sea because of ongoing BSE restrictions in the U.S.
However, Ruiz said there is also growing demand for wheat, canola, special crops and pork as Canadian companies gradually loosen the stranglehold American firms have had on the Mexican market.
With duties removed from all products except corn, beans and supply-managed goods, buyers are increasingly making purchase decisions on factors such as quality and service, where Canada is perceived to have a distinct advantage.
“They prefer to deal with Canadian businessmen than American businessmen,” Ruiz said.
He expects the value of trade with Mexico to continue to rise, which is why it is critical to have a troubleshooter working on behalf of Canadian exporters situated at the border.
