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Mexico eyes duty-free corn deals to counter Trump

Monday, March 27, 2017

Mexico, the world’s biggest buyer of US corn, is considering offering duty-free access to Brazilian and Argentine maize as an alternative to American imports in a move that could have big consequences for US farmers worried about Donald Trump’s trade and tax agenda.

Mexico at present imports 98 per cent of its corn from the US, and total US farm sales to Mexico were $17.7 billion last year — five times greater than when Nafta came into force in 1994. Mexican corn imports from the US were worth $2.3 billion in 2015, according to the US Department of Agriculture.

But Mr Trump, US president, has slammed Nafta as unfair to the US, vowing to renegotiate the deal or walk away, impelling Mexico to speed up a search for alternative suppliers in South America.

Source: Financial Times