Trump's red state rural areas are about the feel lots of pain as Trump's trade talk provokes Mexican reaction by cutting corn and agriculture orders in response to Trump's threats on NAFTA, the New York Ties reports yesterday.
ow corn has taken on a new role — as a powerful lever for Mexican officials in the run-up to talks over Nafta, the North American Free Trade Agreement.
The reason: Much of the corn that Mexico consumes comes from the United States, making it America’s top agricultural export to its southern neighbor. And even though President Trump appears to be pulling back from his vows to completely overhaul Nafta, Mexico has taken his threats to heart and has begun flexing its own muscle.
The Mexican government is exploring buying its corn elsewhere — including Argentina or Brazil — as well as increasing domestic production. In a fit of political pique, a Mexican senator even submitted a bill to eliminate corn purchases from the United States within three years.
Red state Republican are having second thoughts about Donald Trump in a sort of post election remorse.
The prospect that the United States could lose its largest foreign market for corn and other key products has shaken farming communities throughout the American Midwest, where corn production is a vital part of the economy. The threat is particularly unsettling for many residents of the Corn Belt because much of the region voted overwhelmingly for Mr. Trump in the presidential election.
“If we lose Mexico as a customer, it will be absolutely devastating to the ag economy,” said Philip Gordon, 68, who grows corn, soybeans and wheat on a farm in Saline, Mich., that has been in his family for 140 years.
Mr. Gordon said he planned to call Mr. Trump at the White House
Mexico has changed it mind about America and is crafting a bolder response. They point out that America has many benefits and just doesn't appreciate them:
Many leaders in the American agriculture industry say Nafta has been a boon for farmers in the United States, particularly because it opened up new foreign markets and helped to expand agricultural exports more than fourfold since the agreement was signed.
In 2016, the United States exported nearly $18 billion of agricultural products to Mexico, the third-largest market for these American exports, according to the United States Department of Agriculture.
Mexico is not only the leading destination of American corn, but it also imports more dairy products, poultry and wheat from the United States than any other nation, and is one of the top importers of American pork, soybeans and beef, the department says.
The end result of trump policy:
There’s a lot of volatility in agricultural markets to begin with,” said Barbara Patterson, government relations director of the National Farmers Union, “and shutting off our borders or losing access to trading partners has farmers concerned.”
The loss of Mexico as a market for agricultural products, farmers say, could presage job losses and bankruptcies.