News

Mexican businesses reviewing trade options

The president and CEO of the US Grains Council says Mexican businesses will be increasing their costs by purchasing grain from other countries. Tom Sleight says it’s will be hard to beat US corn in terms of pricing.

“The first thing that we would point out is that you’re going to be increasing your costs, at least some. Tariffs are one thing, transportation, convenience and reliability are another. All of it comes into play,” says Sleight.

One of Mexico’s largest business groups – The Consejo Coordinador Empresarial – announced this week it’s exploring potential resources for grains in Brazil and Argentina if supplies from the U.S. stop during any renegotiation of the North American Free Trade Agreement.

Sleight tells Brownfield trade with Mexico has been good for U.S. farmers, which is why the current rhetoric is concerning.

“It’s not encouraging. It’s not encouraging to see relationships we’ve built up over the past 40 years in Mexico, very complex trading relationships, buyer/seller relationships, it’s not real encouraging to see them start to deteriorate” says Sleight.

Mexico is the largest buyer of U.S. corn.

Audio: Tom Sleight, President & CEO, U.S. Grains Council