Argentina Grain Exporters Ready To Fill Mexico Demand If U.S. Imposes Tariffs

www.oann.com | 4/9/2018 | Staff
Fubu_chik (Posted by) Level 3
MEXICO CITY (Reuters) – If trade strife continues between the United States and Mexico despite a deal struck on Friday, Argentine grain exporters are ready to step in to meet Mexican food demand, the head of an Argentine industry chamber said.

The U.S. government called off a threatened 5% tariff on all Mexican goods when Mexico promised to do more to stem the flow of Central American immigrants into the United States. But Trump on Monday warned he could revive the tariffs if Mexico’s Congress does not approve the plan.

Mexico - Duties - US - Farm - Products

Mexico would likely respond by erecting ****-for-tat duties against U.S. farm products, which would make buying from other countries more attractive.

“The moment that the U.S. sets up trade duties, we would be there,” said Gustavo Idigoras, president of Argentina’s CIARA-CEC chamber of grains exporting companies, which represents global traders such as Louis Dreyfus Company, ADM, and Cargill.

Transport - Costs - United - States - Mexico

“Transport costs from the United States to Mexico are very low, which is why we are not there at the moment. But if tariffs are imposed, we should have enough corn to meet Mexican demand,” he said. “Right now Argentine corn has a very competitive price, and there is plenty of volume available for export to Mexico.”

Mexico is the top importer of U.S. corn, wheat, pork and dairy by volume. Argentina exported about 150,000 tonnes of corn and 180,000 tonnes of wheat to Mexico in December and January, Idigoras said – a fraction of the millions of tonnes of grains it buys from the United States.

US - Corn - Mexico - Idigoras - Argentina

If U.S. corn were to stop going to Mexico, Idigoras said Argentina combined with Brazil could fully fill the supply gap.

The United States has traditionally supplied more than 95...
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