How Cross-Border Trade Could Lower Prices

The United States is facing an unprecedented egg shortage, with prices skyrocketing due to the ongoing avian flu outbreak. While the U.S. government has reached out to European countries like Denmark and the Netherlands for egg imports, the solution could be much closer—Mexico.

Mexico has a stable and self-sufficient egg production system, boasting a strong poultry industry that has not been hit as hard by avian flu as the U.S. With efficient farming practices, disease control measures, and a surplus of eggs, Mexico has the potential to provide much-needed relief to the American market. However, strict import regulations and ongoing trade tensions between the two nations present challenges that must be addressed for this partnership to become a reality.

The Egg Shortage in the U.S.: A Crisis for Consumers

Egg prices in the United States have surged by nearly 60% in the past year, with the national average exceeding $5 per dozen. In some states, prices have even surpassed $7 due to supply constraints. The crisis is primarily driven by the highly contagious bird flu outbreak, which has led to the culling of over 150 million birds since 2022, devastating the country’s poultry farms.

The egg shortage is not just a problem for consumers—it affects restaurants, bakeries, and food manufacturers that rely on eggs for their products. Inflationary pressures and increased feed costs have further strained the industry, making recovery even more difficult.

Why Mexico Could Be the Solution

Unlike the U.S., Mexico’s egg production remains stable, with nearly 170 million laying hens and a production capacity of around 3 million metric tons of eggs per year. The country ranks among the top four egg producers globally and has the highest per capita egg consumption in the world.

Key Reasons Mexico Could Help

• Strong Avian Flu Control Measures – Mexico has implemented robust vaccination programs to prevent avian flu outbreaks, minimizing the risk of large-scale culling.

• Reliable Egg Supply – With a well-established poultry industry, Mexico can meet both domestic demand and export requirements.

• Lower Prices – Eggs in Mexico are significantly cheaper, with a carton of 30 eggs costing around $3.70 to $4.50, compared to the U.S., where a dozen costs $5 or more.

• Existing Trade Partnership – Mexico is the U.S.’s largest trading partner, with over $893.9 million in two-way trade annually, making logistics and agreements more feasible.

Trade Barriers and Challenges

While Mexico has the capacity to help alleviate the U.S. egg crisis, several obstacles stand in the way:

• Strict Import Regulations – The U.S. Department of Agriculture (USDA) enforces stringent health and safety standards to prevent disease transmission, limiting large-scale egg imports.

• Tariffs and Trade Tensions – The Trump administration’s recent increase in tariffs on Mexican imports has complicated trade relations, making negotiations difficult.

• Smuggling Concerns – With egg prices so high in the U.S., border patrol agents have reported a surge in illegal egg smuggling from Mexico, raising concerns about unregulated imports.

A Path Forward: How Collaboration Could Work

To make Mexican egg imports a viable solution, both governments need to collaborate on regulatory adjustments and trade agreements. Some key steps could include:

• Temporary Import Exemptions – The U.S. could implement emergency measures to allow eggs from certified Mexican farms that meet USDA health standards.

• Bilateral Trade Agreements – Mexico and the U.S. could establish new trade deals focused on agricultural exports to stabilize egg prices.

• Expedited Health Inspections – Streamlining the inspection process for Mexican eggs would ensure safe and efficient imports.

• Tariff Reductions – Lowering tariffs on Mexican eggs could reduce costs for American consumers while supporting Mexican farmers.

Conclusion: A Win-Win Opportunity

With the U.S. egg shortage worsening, exploring trade opportunities with Mexico could be a practical and effective solution. Mexico’s stable poultry industry, coupled with its geographic proximity and existing trade relations, makes it an ideal partner to help balance supply and demand. While regulatory challenges must be addressed, a strategic collaboration could provide relief to millions of Americans struggling with rising food prices.

By leveraging Mexico’s strong egg production, the U.S. could ease its crisis, stabilize inflation, and ensure affordable food for its citizens. Now, the question remains: Will both governments take action before the situation worsens?