Food Producers Accelerating Exports to Mexico
U.S. food producers are expediting shipments to Mexico and seeking alternative markets as concerns rise over immigration and trade policy changes. Food producers are lining up alternative markets as business could be at risk if clashes over trade and immigration escalate between Mexico and the U.S., according to Reuters.
The new Donald Trump Administration is pledging to renegotiate the North American Free Trade Agreement and impose a 20 percent import tax to pay for a border wall. Producers of corn, soybean meal and dried distillers’ grains are attempting to accelerate shipments because the potential tariffs could disrupt trade. One trade expert says: “They don't know what will happen in the next month or the next week,” adding U.S. exporters are trying to move product as fast as they can. Any changes to trade policy that are detrimental to Mexico will likely lead to retaliation. Reuters points out that in 2009 and 2010, Mexico put tariffs on 99 American exports in retaliation to the U.S. blocking Mexican trucks from using U.S. highways. The dispute cost U.S. businesses more than $2 billion.
Source; NAFB News