Mexico may stop buying US corn
MEXICO CITY: Mexico has identified a potential weapon in its trade wrangle with United States President Donald Trump: yellow cobs of American corn.
Mexico imports billions of dollars’ worth of corn from the US to feed its livestock. But with Trump pushing to shake up the countries’ trade ties, Mexico is threatening to buy from elsewhere.
That is worrying corn growers in some of the very same US states that voted heavily in favour of Trump: Iowa, Dakota, Kansas, Missouri and Nebraska.
Trump has vowed to restrict free trade with Mexico in order to protect US jobs and industry.
But with Mexico gearing up for a potential trade battle, the effect could be the opposite.
“For US corn producers, Mexico is their No. 1 export customer,” said US Grains Council president Thomas Sleight.
Mexico’s Agriculture Secretary Jose Calzada said Mexico was in talks with Brazil and Argentina.
US grain is cheaper, at US$198 (RM876.40) a tonne. Brazilian corn costs US$210 a tonne and Argentine corn US$217.
Trump has vowed to renegotiate the North American Free Trade Agreement (Nafta) with Mexico and Canada. AFP