Mexico ready to retaliate by hurting American corn farmers

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Anti-Trump protests take place across Mexico

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

Mexico is without doubt one of the high consumers of American corn on the earth at present. 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 USA.

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

“I will ship a invoice for the corn that we’re shopping for within the Midwest and…change to Brazil or Argentina,” Rios Piter, 43, instructed instructed CNN’s Leyla Santiago on Sunday at an anti-Trump protest in Mexico Metropolis.

He added: It is a “good solution to inform them that this hostile relationship has penalties, hope that it modifications.”

American corn goes into numerous the nation’s meals. In Mexico Metropolis, from high-quality eating eating places to taco stands on the road, corn-based favorites like tacos will be discovered in all places.

Associated: Mexican farmer’s daughter: NAFTA destroyed us

America can 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 latest yr of accessible information. In 1995, the yr after NAFTA turned regulation, corn exports to Mexico have been a mere $391 million.

Specialists say such a invoice could be very expensive to U.S. farmers.

“If we do certainly see a commerce conflict the place Mexico begins shopping for from Brazil…we’ll see it have an effect on the corn market and ripple out to the remainder of the ag financial system,” 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 desires 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 desires to renegotiate NAFTA. He blames it for a flood of producing jobs to Mexico. A nonpartisan congressional analysis report discovered that to not be true.

Associated: Mexico doubles down on Trump ‘contingency plan’

Nonetheless, Trump says he desires a greater commerce deal for the American employee — although he hasn’t stated what a greater deal appears like.

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

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

Such robust speak is not obtained nicely by Mexican leaders like Rios Piter. He is not alone. Mexico’s financial system minister, Ildefonso Guajardo, stated in January Mexico would reply “instantly” to any tariffs from Trump.

“It’s totally clear that now we have to be ready to right away be capable of neutralize the influence of a measure of that nature,” Guajardo stated Jan. 13 on a Mexican information present.

–Shasta Darlington contributed reporting to this story

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


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