Mexico ready to retaliate by hurting American corn farmers

Mexico is able to hit the U.S. the place it hurts: Corn.

Mexico is among the prime consumers of American corn on the earth immediately. And Mexican senator Armando Rios Piter, who leads a congressional committee on overseas relations, says he’ll introduce a invoice this week the place Mexico will purchase corn from Brazil and Argentina as a substitute of america.

It is one of many first indicators of potential concrete motion from Mexico in response to President Trump’s threats towards the nation.

“I’ll ship a invoice for the corn that we’re shopping for within the Midwest and…change to Brazil or Argentina,” Rios Piter, 43, advised advised CNN’s Leyla Santiago on Sunday at an anti-Trump protest in Mexico Metropolis.

He added: It is a “good solution to inform them that this hostile relationship has penalties, hope that it adjustments.”

American corn goes into loads of the nation’s meals. In Mexico Metropolis, from superb eating eating places to taco stands on the road, corn-based favorites like tacos could be discovered all over the place.

Associated: Mexican farmer’s daughter: NAFTA destroyed us

America can also be the world’s largest producer and exporter of corn. American corn shipments to Mexico have catapulted since NAFTA, a free commerce deal signed between Mexico, America and Canada.

American farmers despatched $2.4 billion of corn to Mexico in 2015, the newest 12 months of obtainable information. In 1995, the 12 months after NAFTA turned regulation, corn exports to Mexico have been a mere $391 million.

Specialists say such a invoice can be very pricey to U.S. farmers.

“If we do certainly see a commerce struggle the place Mexico begins shopping for from Brazil…we’ll see it have an effect on the corn market and ripple out to the remainder of the ag economic system,” says Darin Newsom, senior analyst at DTN, an agricultural administration agency.

Rios Piter’s invoice is one other signal of Mexico’s willingness to answer Trump’s threats. Trump needs to make Mexico pay for a wall on the border, and he is threatened taxes on Mexican imports starting from 20% to 35%.

Trump additionally needs to renegotiate NAFTA. He blames it for a flood of producing jobs to Mexico. A nonpartisan congressional analysis report discovered that to not be true.

Associated: Mexico doubles down on Trump ‘contingency plan’

Nonetheless, Trump says he needs a greater commerce deal for the American employee — although he hasn’t mentioned what a greater deal appears like.

All sides signaled two weeks in the past that negotiations would start in Might after a 90-day session interval.

However Trump says if negotiations do not bear the deal he needs, he threatens to withdraw from NAFTA.

Such powerful discuss is not acquired effectively by Mexican leaders like Rios Piter. He is not alone. Mexico’s economic system minister, Ildefonso Guajardo, mentioned in January Mexico would reply “instantly” to any tariffs from Trump.

“It is very clear that we’ve got to be ready to right away be capable to neutralize the influence of a measure of that nature,” Guajardo mentioned Jan. 13 on a Mexican information present.

–Shasta Darlington contributed reporting to this story

CNNMoney (Mexico Metropolis) First revealed February 13, 2017: 12:06 PM ET