Trade
The emphasis on domestic agriculture reflects a broader trend in Mexican policy that could challenge existing trade agreements and alter the dynamics of agricultural exports between the two countries.
Threats of widespread tariffs and concerns about retaliation continue to stoke uneasiness in agriculture. With a growing trade deficit and hopes the U.S. could re-embark on the Phase One trade deal with China, could the focus back on trade be positive for agriculture?
Mexico is self-sufficient in white corn, used to make the country’s staple tortilla, but imports genetically-modified yellow corn from the United States which is used largely to feed livestock.
Tariffs, while disruptive, are often used as leverage in trade disputes and contribute to market volatility.
Ontario Premier Doug Ford has called for Canada to negotiate a bilateral trade agreement with the U.S. unless Mexico aligns with North American partners on tariffs for Chinese imports.
Financial Times reports say President-elect Donald Trump has asked Robert Lightizer to return as U.S. trade representative.
The good news is a Trump presidency and Republican-controlled Senate might result in fewer regulations and lower taxes. The bad news is the U.S. could be headed for a possible trade war with China and other countries.
Chinese President Xi Jinping would much prefer to avoid a tariff battle that risks proving much more devastating than the first round.
U.S. agricultural exports totaled $13.13 billion in September against imports of $17.39 billion, resulting in a monthly trade deficit of $4.26 billion.
The British Columbia ports labor dispute continues, impacting exports at Canada’s biggest port in Vancouver with no sign of negotiating progress.