Mexico ready to retaliate by hurting American corn farmers

Mexico ready to retaliate by hurting American corn farmers

Mexico is ready to strike the U.S. where it hurts: Corn.

Mexico is a single of the top rated purchasers of American corn in the globe now. And Mexican senator Armando Rios Piter, who qualified prospects a congressional committee on international relations, claims he will introduce a bill this 7 days the place Mexico will obtain corn from Brazil and Argentina rather of the United States.

It is a single of the 1st signs of probable concrete motion from Mexico in response to President Trump’s threats versus the place.

“I am going to deliver a invoice for the corn that we are shopping for in the Midwest and…improve to Brazil or Argentina,” Rios Piter, 43, informed informed CNN’s Leyla Santiago on Sunday at an anti-Trump protest in Mexico Town.

He extra: It is really a “superior way to convey to them that this hostile partnership has consequences, hope that it modifications.”

American corn goes into a whole lot of the country’s foodstuff. In Mexico Town, from fine eating dining establishments to taco stands on the avenue, corn-centered favorites like tacos can be found everywhere you go.

Linked: Mexican farmer’s daughter: NAFTA ruined us

America is also the world’s biggest producer and exporter of corn. American corn shipments to Mexico have catapulted given that NAFTA, a absolutely free trade deal signed among Mexico, The us and Canada.

American farmers despatched $2.4 billion of corn to Mexico in 2015, the most the latest 12 months of out there details. In 1995, the calendar year just after NAFTA grew to become law, corn exports to Mexico were a mere $391 million.

Industry experts say this kind of a monthly bill would be extremely high-priced to U.S. farmers.

“If we do certainly see a trade war the place Mexico starts off acquiring from Brazil…we’re heading to see it affect the corn current market and ripple out to the rest of the ag financial state,” suggests Darin Newsom, senior analyst at DTN, an agricultural management company.

Rios Piter’s invoice is another indication of Mexico’s willingness to react to Trump’s threats. Trump would like to make Mexico fork out for a wall on the border, and he’s threatened taxes on Mexican imports ranging from 20% to 35%.

Trump also needs to renegotiate NAFTA. He blames it for a flood of producing work opportunities to Mexico. A nonpartisan congressional analysis report discovered that not to be legitimate.

Connected: Mexico doubles down on Trump ‘contingency plan’

Nonetheless, Trump claims he would like a greater trade offer for the American worker — nevertheless he has not mentioned what a much better offer seems to be like.

All sides signaled two weeks in the past that negotiations would get started in May well right after a 90-working day consultation period.

But Trump claims if negotiations will not bear the offer he would like, he threatens to withdraw from NAFTA.

This kind of tricky converse is not been given perfectly by Mexican leaders like Rios Piter. He is not on your own. Mexico’s economic system minister, Ildefonso Guajardo, explained in January Mexico would reply “straight away” to any tariffs from Trump.

“It’s pretty distinct that we have to be organized to right away be able to neutralize the effects of a measure of that nature,” Guajardo reported Jan. 13 on a Mexican news exhibit.

–Shasta Darlington contributed reporting to this tale

CNNMoney (Mexico City) Initially published February 13, 2017: 12:06 PM ET

Supply url