Mexico to begin importing maize from Argentina in 2017

Argentina, in addition to exporting soccer players to Mexico, will also send yellow maize to feed cattle and to produce industrial products from 2017, the year in which the Mexican economy faces the challenge of a renegotiation of the North American Free Trade Agreement (NAFTA).

“Imports of yellow corn from Mexico, which are carried out by the United States, could be supplied by Brazil and Argentina,” says Martín Fraguío, executive director of the Argentine Maize and Sorghum Association (Maizar), when asked if they have enough Grain to send it to the Mexican market.

Since September 2016, Mexican President Enrique Peña Nieto and Argentine President Mauricio Macri have begun to negotiate grain trade and were accelerated by Donald Trump’s message of hatred for the Mexican economy, according to Forbes Mexico.

Since September 2016, Mexican President Enrique Peña Nieto and Argentine President Mauricio Macri have begun to negotiate grain trade and were accelerated by Donald Trump’s message of hatred for the Mexican economy, according to Forbes Mexico.

The threats made by the US president to tax Mexican exports and, on the other hand, the Senate’s strategy to impose import tariffs, open a “good time to meet the demand for yellow corn in Mexico,” says Representative of the food producers.

“It would be a great pleasure for Mexico to buy yellow corn again, and for Argentina, it is an important country for its market”, he states.

The two presidents negotiate and seek to renew the Economic Complementation Agreement ACE 6, a trade agreement that reduced tariffs to the auto industry and auto parts, as well as granting them petroleum privileges and “for several months tried to include the food industry”, Says Martín Fraguío.

“Since I have a memory until the 80’s and 90’s a small volume of maize went to Mexico for animal feed, but when it became a large importer, everything was finished,” recalls the agency’s representative.

With the arrival of Donald Trump to the White House, President Enrique Peña Nieto proposed a foreign policy strategy for the next two years, which seeks to defend national sovereignty, as well as face the hatred of the American millionaire and end dependency Of trade with the United States.

One of Peña Nieto’s proposals presented on January 23, 2017, is to strengthen with South America by strengthening regional integration with Chile, Peru, and Colombia, partner nations of the Pacific Alliance.

“Simultaneously, Mexico will be closer to Argentina and Brazil, countries with which we are working to deepen and expand trade opportunities,” said the president during the Foreign Policy Positioning, a strategy to face the rejection of the president of the United States United.

Mexico was the main buyer of maize from the United States in 2016, according to the US Grains Council.

The US exported 13.3 million tons, additionally sent 1.9 million tons of dry distillers grains (a by-product of ethanol used as animal feed) and 600,000 metric tons of sorghum.

The arrival of Donald Trump to the White House accelerated the negotiations so that the Argentine producers send yellow corn to the Mexican territory, assures Martín Fraguío.

The negotiation of ACE 6 began in September and October 2016, a few months before the presidential elections in the United States, where the millionaire Donald Trump was won, recalls the executive director of the Argentine Maize and Sorghum Association.

According to the Ministry of Agroindustry of Argentina, the production of yellow maize was approximately 39 million 783,000 tons in 2106.

In one year, Argentina exports yellow maize to between 60 and 80 countries, so “there is no country in the world that buys a very large percentage of maize,” says grain product.

Chile, Peru, and Colombia take a million tons a year of the product, South Korea, Japan, and the Arab countries also demand a lot of yellow corn, he adds. “There are other small countries that take small volumes.”

The Argentine Maize and Sorghum Association estimates that at this moment it is worth 150 dollars a ton of corn for consumption and sale in the domestic market. And the Argentine yellow corn swap, which is for trading abroad, is priced at $ 170, but following its trend for April, May, and June, it will be worth $ 150.

For the purchase of Argentine corn, the South American nation needs to adjust quality and sanitary standards between the two countries, negotiations are not complex or difficult to meet because they speak the same language, adds the manager of Maizar.

“It would be incredible and historic corn imports to Mexico because we are countries that we have many things in common and we always understood each other,” he concludes.