Faced with slow economic growth, falling petroleum revenues, and growing debt payments, the Mexican Government has changed the direction of its economic policies, including liberalization of both domestic and trade policies. Mexican agriculture, including the wheat sector, will likely be affected by reforms in trade policy and gradual elimination of consumer and producer subsidies. Reforms will alter domestic and international price relationships and influence production and consumption decisions in various agricultural sectors. This report analyzes and projects Mexican wheat supply and demand conditions in a liberalizing policy environment.