HomeFinanceMexico ready to retaliate by hurting American corn farmers

Mexico ready to retaliate by hurting American corn farmers

Anti-Trump protests take place across Mexico

Mexico is ready to hit the U.S. the place it hurts: Corn.

Mexico is likely one of the prime patrons of American corn on this planet right this moment. And Mexican senator Armando Rios Piter, who leads a congressional committee on international relations, says he’ll introduce a invoice this week the place Mexico will purchase corn from Brazil and Argentina as a substitute of the United States.

It’s one of many first indicators of potential concrete motion from Mexico in response to President Trump’s threats in opposition to the nation.

“I’m going to send a bill for the corn that we are buying in the Midwest and…change to Brazil or Argentina,” Rios Piter, 43, informed informed CNN’s Leyla Santiago on Sunday at an anti-Trump protest in Mexico City.

He added: It’s a “good way to tell them that this hostile relationship has consequences, hope that it changes.”

American corn goes into plenty of the nation’s meals. In Mexico City, from effective eating eating places to taco stands on the road, corn-based favorites like tacos will be discovered in all places.

Related: Mexican farmer’s daughter: NAFTA destroyed us

America can also be the world’s largest producer and exporter of corn. American corn shipments to Mexico have catapulted since NAFTA, a free commerce deal signed between Mexico, America and Canada.

American farmers despatched $2.4 billion of corn to Mexico in 2015, the newest 12 months of obtainable information. In 1995, the 12 months after NAFTA turned regulation, corn exports to Mexico had been a mere $391 million.

Experts say such a invoice can be very pricey to U.S. farmers.

“If we do indeed see a trade war where Mexico starts buying from Brazil…we’re going to see it affect the corn market and ripple out to the rest of the ag economy,” says Darin Newsom, senior analyst at DTN, an agricultural administration agency.

Rios Piter’s invoice is one other signal of Mexico’s willingness to reply to Trump’s threats. Trump needs to make Mexico pay for a wall on the border, and he is threatened taxes on Mexican imports starting from 20% to 35%.

Trump additionally needs to renegotiate NAFTA. He blames it for a flood of producing jobs to Mexico. A nonpartisan congressional research report discovered that not to be true.

Related: Mexico doubles down on Trump ‘contingency plan’

Still, Trump says he needs a greater commerce deal for the American employee — although he hasn’t mentioned what a greater deal seems to be like.

All sides signaled two weeks in the past that negotiations would start in May after a 90-day session interval.

But Trump says if negotiations do not bear the deal he needs, he threatens to withdraw from NAFTA.

Such powerful speak is not acquired nicely by Mexican leaders like Rios Piter. He’s not alone. Mexico’s economic system minister, Ildefonso Guajardo, mentioned in January Mexico would reply “immediately” to any tariffs from Trump.

“It’s very clear that we have to be prepared to immediately be able to neutralize the impact of a measure of that nature,” Guajardo said Jan. 13 on a Mexican information present.

–Shasta Darlington contributed reporting to this story

CNNMoney (Mexico City) First printed February 13, 2017: 12:06 PM ET

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments