Mexico No Longer No. 1 Buyer of U.S. Corn After Trade Tensions

7/6/2017 Bloomberg

corn by World Bank Photo Collection
Photo by World Bank Photo Collection

U.S. corn shipments to Mexico are faltering and the country is no longer the biggest importer, a sign that trade tensions are driving it into the arms of other suppliers.

Sales to Mexico through May were $1.04 billion, down 6.7 percent from a year earlier, the U.S. Department of Agriculture said Thursday in a monthly update. That contrasts with the 32 percent increase for the overall value of U.S. corn exports in the period, during which the average dollar value of the commodity was little changed. Japan boosted its purchases 53 percent to $1.19 billion to become the largest importer of American corn.

Mexico has initiated talks with other major corn exporters this year after it was criticized by President Donald Trump, who said the country has taken advantage of its northern neighbor through the North American Free Trade Agreement, taking away jobs and investment. The dispute helped to send the Mexican peso to a record low against the dollar in January.

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