Home BUSINESS Mexico ready to retaliate by hurting American corn farmers

Mexico ready to retaliate by hurting American corn farmers

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

Mexico is a person of the top purchasers of American corn in the entire world now. And Mexican senator Armando Rios Piter, who leads a congressional committee on overseas relations, suggests he will introduce a monthly bill this week wherever Mexico will obtain corn from Brazil and Argentina rather of the United States.

It can be one particular of the to start with signals of potential concrete action from Mexico in reaction to President Trump’s threats in opposition to the nation.

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

He added: It is really a “excellent way to tell them that this hostile relationship has outcomes, hope that it adjustments.”

American corn goes into a large amount of the country’s foods. In Mexico City, from fine dining places to eat to taco stands on the street, corn-primarily based favorites like tacos can be identified everywhere.

Linked: Mexican farmer’s daughter: NAFTA ruined us

America is also the world’s major producer and exporter of corn. American corn shipments to Mexico have catapulted since NAFTA, a absolutely free trade offer signed amongst Mexico, The us and Canada.

American farmers despatched $2.4 billion of corn to Mexico in 2015, the most current year of obtainable facts. In 1995, the calendar year soon after NAFTA became regulation, corn exports to Mexico had been a mere $391 million.

Specialists say this kind of a invoice would be very pricey to U.S. farmers.

“If we do certainly see a trade war exactly where Mexico starts buying from Brazil…we are going to see it affect the corn current market and ripple out to the rest of the ag economic system,” states Darin Newsom, senior analyst at DTN, an agricultural management agency.

Rios Piter’s monthly bill is one more signal of Mexico’s willingness to respond to Trump’s threats. Trump needs to make Mexico pay for a wall on the border, and he is threatened taxes on Mexican imports ranging from 20% to 35%.

Trump also needs to renegotiate NAFTA. He blames it for a flood of production employment to Mexico. A nonpartisan congressional study report located that not to be genuine.

Related: Mexico doubles down on Trump ‘contingency plan’

Still, Trump claims he desires a better trade offer for the American worker — although he has not said what a greater deal seems to be like.

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

But Trump says if negotiations really don’t bear the deal he wishes, he threatens to withdraw from NAFTA.

These kinds of tough communicate isn’t obtained perfectly by Mexican leaders like Rios Piter. He is not on your own. Mexico’s overall economy minister, Ildefonso Guajardo, said in January Mexico would reply “instantly” to any tariffs from Trump.

“It is really pretty apparent that we have to be well prepared to promptly be capable to neutralize the influence of a measure of that character,” Guajardo claimed Jan. 13 on a Mexican information demonstrate.

–Shasta Darlington contributed reporting to this tale

CNNMoney (Mexico Town) 1st posted February 13, 2017: 12:06 PM ET

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