Could the Mexico-United States conflict benefit Argentine grain exporters?

Expectations among Argentine exporters grow at the prospect of the United States resuming the idea of tariffing Mexican products.


Argentine grain exporters are ready to meet Mexican food demand if trade conflicts between the United States and Mexico continue, said Gustavo Idígoras, president of CIARA-CEC Argentine chamber of grain export companies.
If US corn stopped coming to Mexico, Idigoras said that Argentina along with Brazil could completely fill the supply gap.
"At this moment, Argentine corn has a very competitive price and a lot of volume available to export to Mexico," he explained.

While the United States threatens tariffs, Mexico and Argentina negotiate a free trade agreement, tensions between the two North American countries could speed up those talks, Idígoras added.

The Government of the United States canceled the application of a 5% tariff for all Mexican products when Mexico promised a greater effort to stop the flow of Central American immigrants to the United States.

But the issue of migration is thorny, and on Monday US President Donald Trump said he could revive the idea of ​​tariffs in the future.

Mexico is likely to respond to tariffs with a retaliatory measure against US agricultural products, which would make purchases from other countries more attractive.

SAPEI - Control Service S.R.L. (c) 2019

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