TODAY ON AGDAY
SEPTEMBER 5, 2017
HEADLINES
AS PRESIDENT BILL CLINTON SIGNED INTO LAW THE NORTH AMERICAN FREE TRADE AGREEMENT IN DECEMBER 1993, IT CREATED WHAT WAS THEN THE LARGEST TRADE ZONE IN THE WORLD....LINKING THE ECONOMIES OF CANADA, MEXICO AND THE U-S. BUT NOW - FOUR PRESIDENTS LATER - THE NEW CHIEF EXECUTIVE IS CRITICAL OF THE TRADE PACT. "... THE WORST TRADE DEAL EVER MADE BY ANY COUNTRY - I THNK IN THE WORLD...."> “I HAVE VERY SERIOUS CONCERSN ABOUT NAFTA. IT’S BEEN A CATASTROPHE FOR OUR COUNTRY."WHILE NAFTA HAS BEEN CRITICIZED IN ITS 23 YEARS FOR PUSHING MANUFACTURING JOBS OUT OF THIS COUNTRY....IT HAS BEEN A BOON FOR MANY AMERICAN FARMERS. “THE PRESIDENT WAS ELECTED IN LARGE PART BY THE CORN BELT HERE AND IT’D BE NICE TO SEE HIM TAKE SOME STEPS FOR THE PEOPLE WHO ELECTED HIM. BY ENCOURAGING EXPORTS.” TURNING OUR BACK ON FREE TRADE IS GOING TO HARM MUCH MORE THAN IT HELPS."AND WITH BILLIONS OF DOLLARS OF TRADE DOLLARS AT STAKE, AGDAY TAKES A CLOSER LOOK AT THE POTENTIAL RISKS TO AMERICAN AGRICULTURE....AS RENEGOTIATIONS OF NAFTA BEGIN. AGDAY - PRESENTED BY CHEVY SILVERADO. HIGH-STRENGTH STEEL FOR HIGH-STRENGTH DEPENDABILITY.
NAFTA AND U.S. TRADE
HELLO AND WELCOME TO THIS SPECIAL EDITION OF AGDAY. I’M CLINTON GRIFFITHS. TODAY I’M IN MEXICO AS NEGOTIATIONS BEGIN BETWEEN THE UNITED STATES, CANADA AND MEXICO ON NAFTA, THE NORTH AMERICAN FREE TRADE AGREEMENT. TO THAT END-- WE’RE TAKING A CLOSER LOOK AT WHAT’S AT STAKE FOR AMERICAN AGRICULTURE. AND SIMPLY PUT …IT’S A LOT. AS THE INVITED GUESTS OF THE U.S. GRAINS COUNCIL IN MEXICO -- WE HEARD HOW RENEGOTIATIONS ARE ALREADY ALTERING TRADE. ARTURO BASULTO\INTER INDUSTRIAS DEL SURESTE “ARE YOU WAITING TO BUY GRAIN FOR OCTOBER YES USUALLY BY NOW WE HAVE OUR GRAIN PURCHASES ALL THE WAY THROUGH DECEMBER. BUT AS NEGOTIATIONS START WE’RE JUST WAITING TO SEE WHAT EACH GOVERNMENT’S POSITION IS GOING TO BE IN RELATIONSHIP TO THE AGREEMENT SPECIFICALLY AS IT PERTAINS TO AGRICULTURE.” SINCE TAKING EFFECT IN 1994 NAFTA HAS HAD A BIG IMPACT ON AGRICULTURE AND INFRASTRUCTURE BETWEEN THE THREE COUNTRIES. TYNE MORGAN HAS MORE. IN THE 21 YEARS SINCE THAT AGREEMENT CAME INTO FORCE, U.S. AG EXPORTS HAVE MROE THAN QUADRUPLED FROM ABOUT 9 BILLION TO 39 BILLION. THATS’ A HUGE INCREASE. ADN TEH U.S. HAS ABOUT BECASUSE OF THAT FREE TRADE AGREEMENT, WE HAVE A MARKET SHARE IN THOSE TWO COUNTRIES OF ABOUT 65 PERCENT LOOKING AT IT BY COUNTRY, CANADA IS THE NUMBER 2 CONSUMER OF U-S AGRICULTURAL GOODS, AND THE TOP BUYER OF U-S FRESH FRUITS AND VEGETABLES. MEXICO RANKS #3 ON THE OVERALL LIST, BUT IS THE TOP DESTINATION FOR U-S PORK, POULTRY AND SOYBEAN MEAL. AND LAST YEAR RANKED THE NUMBER ONE BUYER OF U-S CORN. WHILE MEXICO IS A TOP EXPORT MARKET FOR GRAINS, IT’S THE GROWING DEMAND FOR PROTEIN THAT COULD PROVIDE AN ADDED BOOST. ALL OF THESE DIFFERENT PROTEINS GOING OUT IF WE CAN FEED IT IN THE U-S, FEED OURC CORN IN THE UI-S TO OUR ANIMAL INDUSTRY, AND THE LIVESTOCK INDUSTRY AND EXPORT THAT FINISHED PRODUCT, THAT’S THE BIGGEST VALUE WE CAN GET. BUT IT’S MORE THAN JUST PRODUCTS GOING OUT. NAFTA HAS ALSO OPENED THE DOOR FOR FRESH PRODUCE TO COME IN. WE’VE SEEN A LOT MORE TRADE INF RUITS AND VEGETABLES. ALL OF THOSE AVACOADOES THOSE HEALTHY FATS WE EAT INT EH UNITED STATES NOW, MOST OF THAT COMES FROM MEXICO. BUT FOR GROUPS LIKE RICE PRODUCERS, IT’S NAFTA HAS ROOM FOR ALL WE’RE LOOKING FOR IS A FAIR DEAL. WE JUS TWANT TO LEVEL THE PLAYING FIELD ON BOTH SIDES OF HTE TABLE. SUGARBEET GROWERS AGREE. NAFTA IS A CHALLENGE FOR US BECAUE IT WOULD HAVE GIVEN SOME COUTNRIES, SPECIFICALLY MEXICO, FREE REIGN TO SHIP INTO THE UNITED STATES. DURING A RECENT VISIT TO MEXICO, AG SECREATRY SONNY PERDUE TRYING TO SET A POSITIVE TONE FOR AG RENEOGITATIONS. THE SECRETARY ANDI ARE HOPING CAN BE A MODEL OF INTEGRATION OF ECONOMIES THAT CAN BEINIFIT BOTH SIDES ON EITHER SIDE NOT JUST IN THE AGRIUCLTURAL SECTOR. NOW FARMERS AND AGRIBUSINESS ACROS NORTH AMERICA WAIT AND SEE IF THIS NEW DEAL CAN IMPROVE ON THE LAST. ITS EASY TO TALK ABOUT THE IMPORTANCE OF NAFTA ITS BETTER TO SHOW YOU. AND FOR THAT WE START JUST NORTH OF CORPUS CHRISTIE TEXAS. GRAIN HARVEST IN SOUTH TEXAS MAY BE OVER, BUT PRODUCT IS STILL ROLLING. CHARLES RING \ SINTON TX “MY SORGHUM IS JUST PRETTY MUCH GONE. THERE’S JUST A FEW LOADS LEFT///" CHARLES RING FARMS SEVERAL THOUSAND ACRES NEAR SINTON, TEXAS. EXPORTS HAVE BEEN ESSENTIAL TO PRICES FOR DECADES NOW. “I WAS TRADING CORN SHIPPING CORN SORGHUM INTO MEXICO BEFORE NAFTA AND I REMEMBER HAVING TO WAIT UNTIL FEBRUARY OF THE FOLLOWING YEAR TO SHIP ANYTHING INTO MEXICO BECAUSE THEIR TARIFF WAS ON.” ONCE NAFTA KICKED IN AND FULLY TOOK EFFECT, THAT CHANGED. “WHEN NAFTA CAME ALONG AND ALL THAT EVENED OUT SO WE COULD TRADE CORN OPENLY ALL YEAR LONG.” AND ITS ONE REASON HE’S FOLLOWING RENEGOTIATIONS CLOSELY. “YOU KNOW IT CAN’T BE ONE SIDED AND I DON’T THINK NAFTA WAS AS FAR AS AGRICULTURE IS CONCERNED. NOW THERE’S OTHER OTHER INDUSTRIES THAT MAY HAVE BEEN HURT. WE JUST DON’T WANT AGRICULTURE TO BE THE PAWN IN ALL OF THIS. WE WANT TO MAKE SURE THAT OUR PRODUCTS ARE OPENLY TRADED AND EASILY ACCESSIBLE TO THE MEXICAN MARKET."BOBBY NEDBALEK SAN PATRICIO CO. TX: “BECAUSE WE DO HAVE A GOOD RELATIONSHIP WITH MEXICO AND THEY COME INTO THIS AREA AND HAVE BEEN INVOLVED IN SOME COUNTRY ELEVATOR OPERATIONS AND THAT’S BEEN GOOD COMPETITION AND KEEPS ALL THE NATIVES HONEST. SOME OF THAT COMPETITION COMES FROM A MEXICAN COMPANY CALLED CHAPAQUIROGA. IT OWNS MULTIPLE U.S. ELEVATORS INCLUDING THIS ONE IN PROGRESO TEXAS, EMPLOYEES ABOUT 300 PEOPLE AND HAS INVESTED 6 TO 7 MILLION DOLLARS IN INFRASTRUCTURE IN THE LAST FEW YEARS...SHIPPING ROUGHLY 500-THOUSAND METRIC TONS OF GRAIN IN 2016. ALEJANDRO CHAPA\OWNER OF CHAPAQUIROGA *AND THE COMPANY WE CREATED IN TEXAS WON’T BE WORTH ALL OF THAT INVESTMENT ALL OF THAT INFRASTRUCTURE. IT WOULD BE WORTHLESS BECAUSE WE SHOULD MOVE TO OTHER PARTS OF MEXICO FOR US TO BE ABLE TO RECEIVE GRAIN THROUGH OTHER MEANS. DENEB GALVAN\ CHAPAQUIROGA “MEXICAN CUSTOMERS ARE NOT GOING TO SAY ONLY OH YES MY GRAIN IS GOING TO BE 20 PERCENT HIGHER. THEY’RE GOING TO SEEK OPPORTUNITIES IN OTHER PLACES.” INCLUDING FROM SOUTH AMERICA. AND ANY MAJOR CHANGES COULD IMPACT FARMING IN SOUTH TEXAS SIGNIFICANTLY. DANIEL PERKINS\ GAVILON LOCATION MANAGER, PROGRESO TX “IN FACT I WOULD SAY THREE QUARTERS OF THE PRODUCTION AND OUR DRAW AREA WHICH IS ESSENTIALLY HOUSTON SOUTH. THREE QUARTERS OF THAT GOES ACROSS THE BORDER TO MEXICO.” “PRODUCTION DOWN HERE IN SOUTH TEXAS IN GENERAL OF ROW CROPS WOULD BE VASTLY DIFFERENT WITHOUT MEXICO AS A CONSUMER."DENEB GALVAN\ CHAPAQUIROGA “IT WILL BE A PITY IF IF THINGS GO WRONG BUT I’M VERY CONVINCED I’M VERY CONFIDENT THAT THINGS ARE GOING TO GO IN THE RIGHT WAY."THE RIGHT WAY BEING...NO NEW TARIFFS. BECAUSE THESE ARE BENEFITS FOR BOTH SIDES OF THE BORDER NOT ONLY FOR ONE. AND AS THESE STAKEHOLDERS SEE IT...LEADING TO POSITIVE ECONOMIC GROWTH FOR EVERYONE. CHARLES RING \ SINTON TX: WE NEED A HEALTHY MEXICAN ECONOMY AS IMPORTANT AS IMPORTANT AS ANYTHING THAT THEY CAN BUY OUR PRODUCTS.”
TEASE
WE’LL FOLLOW THE GRAIN SOUTH--AS END USERS IN MEXICO WORRY ABOUT WHAT RENEGOTIATIONS COULD MEAN FOR THE FUTURE. AND LATER, CAN MEXICO REPLACE U-S SUPPLIERS? WE’LL HEAR FROM SOME BIG IMPORTERS PLUS BREAKING DOWN POTENTIAL STICKING POINTS WITH WASHINGTON’S JIM WEISMEYER.
U.S. GRAIN IN MEXICO
WELCOME BACK TO AGDAY ONCE US FARMERS HARVEST AND SELL MUCH OF THAT PRODUCT ENDS UP HERE --IN MEXICO AND FOR THE BUYERS AND END USERS HERE-- NAFTA IS AN IMPORTANT PART OF EVERY TRANSACTION. WHETHER IT’S LOADED AND DRIVEN OR ROLLS OUT BY RAIL … U.S. GRAINS ARE POURING OUT OF OUR COUNTRY. HEADED FOR END USERS IN MEXICO. RICARDO ELIZONDO\ WE USE RAW MATERIAL CORN SORGHUM WHEAT FIBER LIKE COTTON SEED HULLS TO MAKE FEED FOR LIVESTOCK THIS FAMILY RUN FEED MILL SAYS NAFTA HELPED MAKE THAT GRAIN… AND IN TURN THEIR FEED… COMPETITVE.AND THEY’D LIKE TO BUY MORE."WE HAVE A PLAN TO DO THAT FOR US TO GROW IN 2018" BUT WE’RE WAITING TO SEE WHAT HAPPENS WITH NAFTA BEFORE MAKING THE INVESTMENT.” A MULTI-MILLION DOLLAR DECISION NOW PUTTING THEIR BUSINESS AND FUTURES ON HOLD. “MY CHILDREN THEY’VE ALREADY STARTED A DIFFERENT BUSINESSES, COMPLETELY DIFFERENT TO MY BUSINESS SO THEY WON’T HAVE TO DEPEND ON MEXICAN POLICIES OR AMERICAN POLICIES.” ABOUT AN HOUR AWAY…TUCKED INTO THE HILLSIDES NEAR SABINAS HIDALGO IS THE RANCHO LA JOYA FEEDLOT—WHERE OWNER MARTIN GONZALEZ ALSO HOPES TO ONE DAY SHARE HIS BUSINESS WITH FAMILY. MARTINE GONZALEZ\ RANCHO LA JOYA-- DIRECTOR “I MEAN THE BIGGEST PART OF THIS WAS MY PARENTS WORK. IT WAS DISCIPLINE IT WAS THEIR HARD WORK AND THERE IS CONTINUITY TO THAT AND THAT’S SOMETHING THAT I WANT TO CONVEY TO MY CHILDREN AND TO MY GRANDCHILDREN. SINCE STARTING WITH 180 CALVES 30 YEARS AGO, THE OPERATIONS HAS GROWN STEADILY— TODAY FEEDING ROUGHLY 3-THOUSAND TONS OF CORN A MONTH TO 20 THOUSAND HEAD OF CATTLE. “THERE’S REALLY A LOT OF POTENTIAL. MEXICO HAS THE POTENTIAL TO CONTINUE GROWING AND WE’RE FORTUNATE TO BE RIGHT NEXT TO THE NUMBER ONE GRAIN COUNTRY. I’M COMPLETELY MARRIED TO NAFTA. IT’S GOING TO HELP OUR COUNTRY IS GOING TO HELP BOTH COUNTRIES. FOR HIM—FINDING FEED ELSEWHERE IS A PROBLEM HE’D RATHER NOT FACE. “WE COULD LOOK TO SOUTH AMERICA BUT IT’S REALLY NOT PRACTICAL I MEAN ONLY IF THE UNITED STATES JUST REFUSED TO SELL TO US THEN WE MIGHT HAVE TO RESORT TO THAT.” 500 MILES TO THE SOUTH… U.S. GRAINS ARE SATISFYING A THIRST IN MEXICO’S BURGEONING CRAFT BEER INDUSTRY. IT’S A GROWING MARKET FOR BARLEY FARMERS IN PLACES LIKE MONTANA. 80 PERCENT OF THE MEXICAN CRAFT BREWERIES AND RIGHT NOW AND WE HAVE TO SAY THAT RIGHT NOW WE ARE 400 MEXICAN BREWERIES. 80 PERCENT OF US WE IMPORT OUR BASE MALTS MAINLY FROM THE U.S.. FREE TRADE BETWEEN NEIGHBORS IS HELPING STEEP THE INDUSTRY HERE..BUT IF SOMETHING CHANGES IN BETWEEN THE NAFTA BETWEEN MEXICO AND THE U.S. OF COURSE THE BOOM OF CRAFT BEERS IN MEXICO CAN BE DAMAGED A LITTLE BIT. AND SINCE MEXICO ONE OF THE LARGEST BEER EXPORTERS IN THE WORLD THE IMPACT COULD BUBBLE OVER INTO GLASSES ACROSS THE GLOBE. BUT WHAT I THINK IS WE HAVE TO REALLY PUSH OUR LAWMAKERS IN BOTH SIDES OF THE BORDER MEXICO AND THE U.S. TO MAKE IT FAIR TO MAKE IT SUSTAINABLE IN TERMS OF ECONOMIC DEVELOPMENT FOR BOTH COUNTRIES. WHEN I SAY OUR BEER IT’S NOT TEMPUS BEER IS NOT PRIMUS BEER IS NOT MEXICAN BEER IT IS NORTH AMERICAN BEER.
TEASE
ONE PRODUCT—TWO COUNTRIES AND THREE MEXICAN BUSINESSES NOW CAUTIOUSLY WAITING TO SEE IF THEIR FUTURE WILL INCLUDE MORE OR LESS AMERICAN GRAIN. WE’LL HEAD BACK NORTH OF THE BORDER FOR A LOOK AT CHALLENGES BETWEEN US AND OUR CANADIAN COUNTERPARTS.
DAIRY FRUSTRATIONS WITH NAFTA
THE U.S. DAIRY INDUSTRY HAS EXPRESSED FRUSTRATION WITH CANADA’S POLICIES AND MARKET ACCESS. AND THE IMPACT HIT HOME EARLIER THIS YEAR IN WISCONSIN AS U.S. PRODUCT WAS SHUT OUT OF THE COUNTRY. BETSY JIBBEN REPORTS. A DARK, QUIET PARLOR SITS EMPTY... QUITE UNUSUAL FOR A DAIRY BUT THAT’S THE CASE FOR QUALA -T ACRES IN JEFFERSON WISCONSIN. “ALL THE HARD WORK WE PUT IN TO GET THIS BUILT UP LIKE THIS, THEN YOU GET A LETTER AND IT CAN CHANGE YOUR LIFE IN A SECOND,""BACK IN APRIL, GRASSLAND DAIRY PRODUCTS NOTIFIED ITS PRODUCERS IT WOULD NOT ACCEPT ANY MORE MILK BY THE END OF THE MONTH. MAJORITY OF DAIRIES FOUND A NEW HOME, WHILE THE CHWALA’S DECIDED TO SELL.""IT’S HARD. I MISS THE COWS.” BREATH “COULDN’T DO MUCH WITH THEM ANYMORE BUT I MISS THEM.” THE TWO WHO WHO GREW THEIR FAMILY BUSINESS TO 150 MILK COWS AND 80 YOUNGSTOCK FORCED TO SELL-OUT... SHORT NOTICE AND LIMITED ANSWERS TO FIND A NEW PROCESSOR FAST. “EVERYONE SAID THEY WERE FULL."THE CHWALA’S ARE KEEPING THEIR OWN CALVES AND YOUNGER STOCK. HOWEVER, CHWALA RECEIVED A LAST MINUTE OFFER.. ONE THEY COULDN’T TAKE. " THEY WERE GOING TO GIVE US BASE RATE PLUS WE HAD TO PAY FOR ALL OF THE HAULING. AND SO WE PROBABLY WOULDN’T EVEN GET 14 BUCKS A HUNDRED,"A REPRESENTATIVE WITH THE WISCONSIN DEPARTMENT OF AGRICULTURE, TRADE AND CONSUMER PROTECTION. SAYS EACH PROCESSOR WORKED OUT ITS OWN DEALS. SOME OF THOSE ARE SHORT TERM CONTRACTS. GRASSLAND DAIRY PRODUCTS HAD SAID ALL ALONG THEY HAD TO DROP PRODUCERS EARLIER THIS SPRING DUE TO CANADA’S POLICY ON ULTRA FILTERED MILK. THE FDA JUST CHANGED ITS DOMESTIC POLICY ON ULTRA FILTERED MILK SO IT CAN BE USED MORE IN THE UNITED STATES. MANY DAIRY PROCESSORS AND PRODUCERS PRAISING THE CHANGE HOPING IT WILL BRING DEMAND. YET WESTERS SAYS CANADA HAS NOT CHANGED ITS POLICY. IN JULY, CANADA ANNOUNCED THEY WERE GOING TO INCREASE THE QUOTA IN 5 IN THE BIGGEST PROVIDENCES. (***TAKE OUT MIDDLE HERE**) SINCE THEY INCREASED THEIR MILK SUPPLY, THAT’S EVEN LESS OF AN INCENTIVE TO WORK WITH US ON INCREASING MARKET ACCESS,"TURNING A TOPIC AS IN-TANGIBLE AS TRADE INTO REAL LIFE FOR THESE LIFE LONG PRODUCERS REPORTING IN JEFFERSON, WISCONSIN, I’M BETSY JIBBEN. THANKS BETSY.
TEASE
WHEN AGDAY CONTINUES DAIRY POLICY ISN’T THE ONLY STICKY ISSUE, JIM WEISMEYER EXPLAINS WHAT MAY BE A BIGGER PROBLEM FOR NEGOTIATORS. BUT FIRST, MAJOR MEXICAN IMPORTERS DISCUSS SUPPLY UNCERTAINTY AND SOURCES IN SOUTH AMERICA. ARE YOU A GAME CHANGER? KNOW SOMEONE WHO IS? CHEVRON IS SEARCHING FOR THOSE PEOPLE THAT HAVE MADE AN IMPACT ON THE INDUSTRY. SHARE YOUR NOMINEE AT CHEVRONDELO DOT COM SLASH GAME CHANGERS! DELO: LET’S GO FURTHER.
MEXICO SUPPLY UNCERTAINTY AND SOURCES IN SOUTH AMERICA
MEXICO IS A DEFICIT AG PRODUCER FOR THINGS LIKE CORN. AND SO IT NEEDS TO IMPORT THESE RAW MATERIALS. AND WHILE PROXIMITY AND INFRASTRUCTURE HAS MADE THE US A LOGICAL TRADING PARTNER -- BUYERS HERE ARE NOW LOOKING TO THE SEA. AS THE FEED GOES OUT.... THE TRAINS ROLL IN--TO GROUPOGRAMOSA--A COMMERCIAL ELEVATOR AND FEED MILL IN QUERETARO MEXICO. JORGE CASTILLO\OPERATIONS MANAGER “WE RECEIVE TRAINS FULL OF GRAIN MOSTLY CORN YELLOW CORN WHERE WE SEE ABOUT FIVE OR SIX TRAINS A MONTH.” EACH 110 CARS LONG WEIGHED DOWN WITH ROUGHLY 60-THOUSAND TONS OF U.S. GRAIN. EDMUNDO MIRANDA\COMMERCIAL GROUPO FOR GRAMOSA WE HAVE RAIL HERE AND WE HAVE A DIRECT LINE BETWEEN THE HEARTLAND AND THE CORN BELT IN THE U.S. IN THE MIDWEST. NEARLY 80 MILLION BUSHELS OF GRAIN MOVES THROUGH THEIR FACILITIES EACH YEAR IN ROUTE TO LIVESTOCK AND FOOD COMPANIES - DRIVEN ON THE BACK OF NAFTA. EDMUNDO MIRANDA\ COMMERCIAL GROUPO FOR GRAMOSA “IN MY OPINION I DON’T KNOW WHAT THEY WANT TO RENEGOTIATE. U.S. IS BUILDING THAT WE ARE GETTING ALL THE ADVANTAGE AND I DON’T THINK SO BECAUSE NOW YOU ARE ABLE TO EXPORT SOMETHING THAT YOU DO YOU ARE NOT ABLE TO EXPORT ON THAT QUANTITIES BEFORE NAFTA NO. ARTURO GARCIA\ COMMERCIAL MANAGER AT GRAMOSA AT THE BEGINNING WHEN WE STARTED TO OCCUR IT COULD BE RENEGOTIATED. WE FELT OFFENDED BECAUSE WE ARE PARTNERS THIS MANY YEARS BEFORE AND NOW WHY DO THINGS NEEDS TO BE CHANGED. BUT WE’VE BEEN PUSHED TO LOOK FOR NEW ORIGIN TO IMPORT IMPORT GRAINS. SO NOW WE ARE THANKFUL. ANDREW SWANN\DIR. OF CHARTERING, GROUPOLOGRA THIS YEAR WE’VE SEEN MORE INTEREST FROM BRAZIL. WELCOME TO THE PORT OF PROGRESO--ONE OF THE MANY MEXICAN PORTS SEEING FRESH INVESTMENT IN RECENT YEARS. ANDREW SWANN\DIR. OF CHARTERING, GROUPOLOGRA WE SEE THE GOVERNMENT OF MEXICO MAKING A CONTINUOUS INVESTMENT TO EXPAND THE SCOPE AND SIZE OF THEIR PORTS. WHICH WILL CONTINUE TO LOWER TRANSPORTATION COSTS. JOSE MANUEL\AMEPA DIRECTOR IS IT POSSIBLE TO REPLACE THE UNITED STATES WITH GRAIN FROM ELSEWHERE. IT WOULD BE A COMPLICATED THING TO DO GIVEN THE HIGH VOLUME THAT’S IMPORTED FROM THE UNITED STATES. BUT WE ARE IN CONTACT WITH THE MEXICAN GOVERNMENT WE’RE IN DISCUSSIONS ABOUT ALTERNATIVES FOR IMPORTING ESPECIALLY CORN AND SOYBEAN. ANDREW SWANN\DIR. OF CHARTERING, GROUPOLOGRA CURRENTLY IN VERA CRUZ THEY ARE DOUBLING THE CAPACITY OF THEIR AGRICULTURAL RECEIVING ABILITY. AND DOING THAT WORK..GROUPO GRAMOSA. EDMUNDO MIRANDA\COMMERCIAL GROUP FOR GRAMOSA SO NOW WE HAVE A FACILITY THAT WE ARE BUILDING THERE AND WE WILL BE READY BY THE END OF 2018. ARTURO GARCIA\ COMMERCIAL MANAGER AT GRAMOSA AND I THINK DON’T GET ME WRONG I’M EXPECTING NOT TO BE RUDE BUT AMERICAN FARMERS MAYBE ARE MORE NERVOUS THAN US BECAUSE THAT VOLUME WILL BE REPLACED FROM OTHER REGIONS. NOT AT ALL BECAUSE WE WILL NEED TO KEEP IMPORTING FROM THE UNITED STATES BUT A LOT OF VOLUME WILL CHANGE.A TREND THAT MAY ALREADY BE UNDERWAY... EVEN AS NAFTA NEGOTIATIONS BEGIN. ARTURO BASULTO\INTER INDUSTRIAS DEL SURESTE WE REALIZE THAT WE DEPEND ON GRAIN FROM THE UNITED STATES BUT WE HAVE TO START LOOKING AT THE POSSIBILITY OF IMPORTING FROM SOUTH AMERICA IN CASE THE AGREEMENT FALLS APART. IN THE END WE HOPE THAT COMMON SENSE WILL PREVAIL AND THAT OUR TRADE RELATIONS WILL GO ON FOR A VERY LONG TIME. FREE TRADE TRAPS...JIM WEISMEYER EXPLAINS A MAJOR STICKING POINT WHEN WE RETURN.
IN THE COUNTRY
IN THE COUNTRY - SPONSORED BY KUBOTA. DISCOVER THE POWER BEHIND THE M6 SERIES AT KUBOTA.COM. HERE AT THE PORT OF PROGRESO IN THE YCATAN OF MEXICO BUSINESSES WATCH AS NEGOTIATORS COME THROUGH DETAILS OF A MAJOR TRADE AGREEMENT--WAITING TO SEE HOW THEIR LIVES ME IMPACTED BY THE DEALS CUT IN THEIR NAME. WHILE THERE’S A LOT RIDING ON THE LINE ON ALL SIDES OF THE BORDER, A POTENTIAL STICKING POINT IS CHAPTER 19, A DISPUTE RESOLUTION WITHIN NAFTA. BOTH MEXICO AND CANADA LOOKING TO AMPLIFY THE MEASURE, WHILE THE U-S IS STRIVING TO ELIMINATE IT. FARM JOURNAL WASHINGTON CORRESPONDANT JIM WIESEMEYER SAYS CHAPTER 19 DEALS WITH ILLEGAL SUBSIDES AND DUMPING. IT ALLOWS THEM TO SEEK A REVIEW UNDER A BINATIONAL NAFTA PANEL REGARDING THE TWO COUNTRIES IN DISPUTE. IN THIS CASE LET’S SAY IT’S US AND CANADA. THEY INCLUDE THE TRADE EXPOERTS ON BOTH COUNTRIES TO REEVALUATE THE LEGAL BASIS FOR ANY IMPOSED MEASURE AGAINST A COUNTRY. THE U-S DOESN’T HAVE A GOOD TRACK RECORD, LOSING MORE THAN HALF OF PAST CHAPTER 19 CASES. INSTEAD, THE ADMINISTRATION PUSHING TO RESORT BACK TO AN OLD TRADE REMEDY CALLED SNAPBACK. THAT CALLS FOR INCREASING TARIFFS ON IMPORTS IF THEY’RE PROJECTED TO INJUR OR THREATEN TO INJUR A U.S. DOMESTIC INDUSTRY. NOW I THINK MEXICO WILL ALSO FIGHT THIS BECAUSE IT WOULD LEAD TO A LOT OF CASES I THINK PRIMARILY IN THE PRODUCE WHERE THERE’S BEEN CHARGES OF ANTIDUMPING AREAS. WIESEMEYER SAYS NEGOTIATIONS REGARDING TRADE DISPUTES IS SOMETHING TO WATCH, WITH CANADA ALREADY DRAWING A LINE IN THE SAND SAYING THEY’LL WALK AWAY FROM NAFTA IF CHAPTER 19 IS ELIMINATED.
CLOSE
IM CLINTON GRIFFITHS. THANKS FOR JOINING US ON THIS SPECIAL EDITION OF AGDAY. HAVE A GREAT DAY IN FARM COUNTRY. AGDAY IS POWERED BY RAM TRUCKS - AMERICA’S LONGEST LASTING PICKUPS.
