Mexico able to retaliate by hurting US farmers
Mexico is able to hit the U.S. the place it hurts: Corn.
Mexico is among the high patrons of American corn on the earth as we speak. 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’ll ship a invoice for the corn that we’re shopping for within the Midwest and…change to Brazil or Argentina,” Rios Piter, 43, informed informed CNN’s Leyla Santiago on Sunday at an anti-Trump protest in Mexico Metropolis.
He added: It is a “good technique to inform them that this hostile relationship has penalties, hope that it adjustments.”
American corn goes into quite a lot of the nation’s meals. In Mexico Metropolis, from wonderful eating eating places to taco stands on the road, corn-based favorites like tacos may be discovered in every single place.
Associated: Mexican farmer’s daughter: NAFTA destroyed us
America can also 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.four billion of corn to Mexico in 2015, the newest yr of accessible information. In 1995, the yr after NAFTA turned regulation, corn exports to Mexico had been a mere $391 million.
Consultants say such a invoice can be very pricey to U.S. farmers.
“If we do certainly see a commerce struggle the place Mexico begins shopping for from Brazil…we will 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 answer Trump’s threats. Trump needs 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 needs 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 needs a greater commerce deal for the American employee — although he hasn’t stated what a greater deal appears to be like 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 needs, he threatens to withdraw from NAFTA.
Such robust speak is not obtained nicely by Mexican leaders like Rios Piter. He isn’t alone. Mexico’s financial system minister, Ildefonso Guajardo, stated in January Mexico would reply “instantly” to any tariffs from Trump.
“It’s extremely clear that we’ve got to be ready to right away be capable to neutralize the affect 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 revealed February 13, 2017: 12:06 PM ET