Trump wants to build a wall, which would have tremendous effects on immigrants from Mexico. However, Mexico is about to respond to America in a way that will have its effects too: Corn.
When it comes to international buyers of American corn, Mexico is a top buyer.
Mexican senator Armando Rios Piter, who leads the congressional committee on foreign relations, is planning to introduce a bill that will no longer place Mexico in a position to buy corn from the United States. Instead, Mexico will buy its corn from Argentina and Brazil.
This political move is one of the first actions that Mexico is taking as a response to how Trump has threatened the country.
During an anti-Trump protest in Mexico City, Rios Piter stated, “I’m going to send a bill for the corn that we are buying in the Midwest and…change to Brazil or Argentina. It’s a good way to tell them that this hostile relationship has consequences, hope that it changes.”
The corn that America has supplied to Mexico City has been distributed to dining restaurants all the way to the taco-stands that are found on the street.
The free trade deal NAFTA was signed between Mexico, America, and Canada, the shipments of the America’s corn to Mexico had increased.
According to the most recent available data, in 2015 alone, the American farmers shipped $2.4 billion of corn to Mexico. Fast forward back to the year after the NAFTA became law, 1995, the corn shipments to Mexico had equated to $391 million.
According to the experts, if this bill were to pass, it would have devastating results to the American farmers.
A Newsom senior analyst at DTN stated, “If we do indeed see a trade war where Mexico starts buying from Brazil…we’re going to see it affect the corn market and ripple out to the rest of the economy.”
Trump wants to force Mexico to pay for a wall that will span across the border and he has even gone as far as placing a 20%-35% tax on Mexican imports. This bill is just the beginning of the country’s response to those threats
Trump claims that NAFTA is the reason behind the manufacturing jobs being sent over to Mexico, however that is proven not to be true by a nonpartisan congressional research report. Because of that belief, he wants to renegotiate NAFTA.
Trump wants the American worker to have a better trade deal, however, plans for what that deal entails, has yet to be seen.
According to what both sides have signaled that a 90-day consultation period that would be followed by negotiations, which are expected to begin in May.
However, if Trump does not get the deal he wants, he plans on pulling America from NAFTA.
Such tough talk isn’t received well by Mexican leaders like Rios Piter. He’s not alone. Mexico’s economy minister, Ildefonso Guajardo, said in January Mexico would respond “immediately” to any tariffs from Trump.
“It’s very clear that we have to be prepared to immediately be able to neutralize the impact of a measure of that nature,” said Mexico’s economy minister, Ildefonso Guajardo.