Mexico Looking at Argentina, Brazil, for Yellow Corn
Mexico is turning its attention to South America, given uncertainty over U.S. President Donald Trump’s trade policies. Mexico’s agriculture minister last week announced he would lead a business delegation to Argentina and Brazil to explore buying yellow corn from the two nations. The trip was attributed to an effort to consider lessening Mexico’s dependence on the United States, according to Reuters.Exact dates have yet to be set, but Mexico confirms the trip will happen within the next 20 days, and Mexico could explore quotas and changing the tariff regime for imports from South America if needed.
The announcement follows a threat to retaliate against the U.S. by a Mexican Senator who is considering legislation to direct the country not to buy corn from the United States. The threats stem from Mexico’s opposition to a President Trump proposal to build a border wall and impose a 20 percent import tax on Mexican goods to cover the cost and the consideration of renegotiating the North American Free Trade Agreement.
Source; NAFB News