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Mexico Looks Beyond USA for Corn Imports

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In response to widespread concern over the renegotiation of the North American Free Trade Agreement (NAFTA) under the Trump administration, Mexico proposes to reduce ties to U.S. agriculture and look for new exporting partners. After indications of a possible 20 percent import tax, Mexican Senator Armando Rios Piter has introduced a bill to replace corn imports from the U.S. with those from Brazil and Argentina.
One of Mexico’s largest business groups has also announced that they will look for new sources of imported soy, corn, and wheat. Fears about the renegotiation of NAFTA, particularly how it could impact Mexican import prices, the organization is taking a proactive approach.

Mexico is by far the largest importer of U.S. corn, accounting for over 25 percent of annual US. corn exports. Losing a major buyer could push down corn prices nationwide, particularly affecting farm incomes in areas like the Midwest, which have mainly specialized in corn production.