Mexico is considering making a significant change that could have a big impact on American corn farmers. Mexican senator Armando Rios Piter, who leads a congressional committee on foreign relations, announced that he will introduce a bill to start buying corn from Brazil and Argentina instead of the United States. This move is seen as a response to President Trump’s threats against Mexico.
American corn is a crucial part of Mexico’s food industry, from high-end restaurants to street food vendors. Since the signing of NAFTA, American corn exports to Mexico have increased significantly. In 2015, Mexico imported $2.4 billion worth of corn from the United States, compared to just $391 million in 1995.
Experts warn that if Mexico starts buying corn from other countries, it could have a severe impact on U.S. farmers. Darin Newsom, a senior analyst at DTN, predicts that a trade war with Mexico could disrupt the corn market and have ripple effects on the entire agricultural economy.
President Trump’s tough stance on trade, including threats to impose tariffs on Mexican imports and renegotiate NAFTA, has strained relations between the two countries. While negotiations are set to begin in May, Trump has made it clear that he is willing to withdraw from NAFTA if the deal doesn’t meet his expectations.
Mexican leaders, like Senator Rios Piter and Economy Minister Ildefonso Guajardo, are prepared to respond to any trade measures imposed by the United States. Guajardo has stated that Mexico will take immediate action to neutralize the impact of any tariffs.
The uncertainty surrounding the future of trade relations between the U.S. and Mexico is causing concern for farmers and businesses on both sides of the border. As the two countries navigate these challenges, the outcome of future negotiations will have far-reaching implications for the agricultural industry and the overall economy.