Mexico Finishing New Trade Deal with Argentina

DanIndustry News Release, Trade

mexicoMexico is looking to establish closer ties with other Latin American and South American countries after Donald Trump took office in the United States, its biggest export market. Reuters says Mexico expects to finish a new trade agreement with Argentina by the end of this year as it continues to try to diversify its trading partners. Argentina could make significant gains into the lucrative grain market in Mexico, Latin America’s second-biggest economy. As recently as 2015, Mexico imported $2.3 billion worth of U.S. corn and $1.4 billion of U.S. soy. Mexico’s Deputy Minister, Juan Carlos Baker, says those numbers will likely drop because of a renegotiated North American Free Trade Agreement. Mexico currently sells 80 percent of its exports to the United States. Baker said Mexico would not accept going back to paying export taxes even if shipments to the U.S. were restricted. He did say that rules of origin, the percentage of a product made in North America for NAFTA consideration, could possibly be changed in future discussions.

From the National Association of Farm Broadcasting news service.

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