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Mexico is ready to hit the U.S. where it hurts: Corn

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FTF

Member
UNNbWiC.gif
 

Lorcain

Member
There was a story last year that said China is the largest growing revenue source for the large nut farms in the Southeast US. Even when US demand for nuts trended down, China's demand continued grow. They could do the same thing as Mexico and get their nuts (no pun intended) elsewhere. That would really hurt the Southeast farmers.
 

Beartruck

Member
It's funny how almost without fail, the people economically screwed over the most by Trump will be the people that voted for Trump in the hopes that he'd save their local economy.
 

GhaleonEB

Member
I was born an raised in Iowa, land of epic corn fields. Yeah, this would hit them where it hurts. While I don't wish this on the farmers, they did vote for the guy. This is what they voted for. Bravo.

I do hope they go through with it.
 

Cess007

Member
Man, so good to read news about my country actually doing stuff on this. We need more deals with other countries and depend less on USA.

The thread title is one letter off from getting me worried.

Hey, a little more and say goodbye to that "Latina" category of yours :p
 

TheMan

Member
I understand why they're doing this, but Mexico has a lot more to lose...I don't think this will end well for them.
 

Protein

Banned
I really hope this happens. Mexico shouldn't back down. We need an immediate shake up. People need to see what they elected. A fucking idiot that doesn't know anything about negotiation, economics, or business.
 

Nepenthe

Member
Seriously, was there not a single Republican politician throughout this entire fiasco who remembered that countries who import crops from red states should probably not be pissed off? Least of all those who import corn, the crop that's probably as prominent as hydrogen at this point? You know what? Whatever. If Trump doesn't care, I don't care. Hopefully they go through with this and it'll be a fucking lesson to his voters.

I also presume this would result in cheaper corn for awhile due to a sudden stock increase?
 
If Mexico can do it without hurting their own people too much from increased costs, they should do it.

I do not want American farmers to hurt but when the American ideal is apparently objectively "Always help yourself the most no matter the consequences for everyone else" how could we want Mexico to do anything else?
 

HoodWinked

Member
this is so dumb. even if other countries subsidize their corn production its really no match for american corn that's heavily mechanized and efficient that they wouldn't be able to compete unless they start ramping up their production which would take years. basically mexicans get to pay more for corn and i'm guessing mexicans spend a higher percentage of their income on food. american farmers are hurt and loses out on a essential export source but the corn could be used to make ethanol or exported to somewhere else but it actually makes corn prices cheaper for domestic consumers because of over supply. maybe they'll even sell the corn to brazil then brazil would resell it to mexico because of the price logistics.

all this looks like is two egos Trump and Nieto selfishly making trade decisions without regard for their own people.
 

linkboy

Member
It's funny how almost without fail, the people economically screwed over the most by Drumpf will be the people that voted for Drumpf in the hopes that he'd save their local economy.

Not just Trump, but the Republican party as well, and these people keep going back to them over and over again.
 
I understand why they're doing this, but Mexico has a lot more to lose...I don't think this will end well for them.

The standing policy from this administration already seems to be screw everyone but Russia. So who can blame Mexico for wanting to divest investment in the US to help hedge against inevitable future anti-Mexico action from this administration?
 

leroidys

Member
I hate Trump but the inevitable consequence of this will be more rainforest deforestation. Wish our president wasn't a tantrum prone manchild.
 
I was born an raised in Iowa, land of epic corn fields. Yeah, this would hit them where it hurts. While I don't wish this on the farmers, they did vote for the guy. This is what they voted for. Bravo.

I do hope they go through with it.
Yeah it's ironic that the places that swung Red this election cycle will be facing the brut of this. However, realistically speaking if Mexico goes through with this. A lot of Corn fields will be turned over for other crops and hopefully they will be able to adapt. When the US began subsidizing corn a lot of farmers full scale transitioned all the way to corn abandoning other produce. I hope farmers are smart and quick enough to adapt but I also hope this teaches them a lesson about Trump and the GOP. Unfortunately, I'm afraid Trump and the conservative media will only use this to further drive anti-Mexican sentiment that they will buy into.
 

Goro Majima

Kitty Genovese Member
So a few questions

When they say that Mexico will buy corn from South America, are they referring to Mexican government contracts or does the Mexican government somehow control the food supply? Free trade deal for corn?

Is there a significant worldwide surplus of corn available on the market right now? Or will this just shift US sales over to whoever Brazil and Argentina are currently selling to?

The $2.4 billion worth of corn shipped to Mexico, is that edible corn, ethanol corn, or feed corn? Seems like someone else in this thread indicated that Brazil makes mostly edible corn?

Is corn a destructive crop for the rainforest in Brazil? In other words, are they slashing and burning forests to plant more corn? Will this contract accelerate that?

Apologies if the second article covered any of this since it's behind a paywall
 
  • This won't pass in Mexico.
  • If it does, it would just make corn prohibitively expensive in Mexico.
  • It would have virtually no affect on American corn production, and even if it did, the American government would likely just buy corn to keep the price artificially high like it did throughout most of the Obama Administration. Any corn reserves would then be used to sell to Mexico when the market stabilizes (assuming that this would disrupt the market, which it probably wouldn't).
 

HariKari

Member
Yeah it's ironic that the places that swung Red this election cycle will be facing the brut of this. However, realistically speaking if Mexico goes through with this. A lot of Corn fields will be turned over for other crops and hopefully they will be able to adapt. When the US began subsidizing corn a lot of farmers full scale transitioned all the way to corn abandoning other produce. I hope farmers are smart and quick enough to adapt but I also hope this teaches them a lesson about Trump and the GOP. Unfortunately, I'm afraid Trump and the conservative media will only use this to further drive anti-Mexican sentiment that they will buy into.

Excess corn from a dip in exports won't raise US food prices. A small portion of existing production is used for consumer consumption. Cheap corn helps cattle producers, for instance.

It would be nice, as you say, for the subsidy to stop and for other food to be grown in the place of corn. Less HFCS in everything.
 
  • This won't pass in Mexico.
  • If it does, it would just make corn prohibitively expensive in Mexico.
  • It would have virtually no affect on American corn production, and even if it did, the American government would likely just buy corn to keep the price artificially high like it did throughout most of the Obama Administration. Any corn reserves would then be used to sell to Mexico when the market stabilizes (assuming that this would disrupt the market, which it probably wouldn't).

Correct on all accounts. Do people really think corn prices wouldn't skyrocket in Mexico?

This is like China saying they won't import food anymore.
 

Schattenjäger

Gabriel Knight
  • This won't pass in Mexico.
  • If it does, it would just make corn prohibitively expensive in Mexico.
  • It would have virtually no affect on American corn production, and even if it did, the American government would likely just buy corn to keep the price artificially high like it did throughout most of the Obama Administration. Any corn reserves would then be used to sell to Mexico when the market stabilizes (assuming that this would disrupt the market, which it probably wouldn't).
Exactly
This is just posturing that won't go anywhere
 

Lo-Volt

Member
If Mexico wants to do it to make a point, sure, but it's not like the corn they are going to get is going to be cheaper as a result.

The U.S. might have more economic and coercive power than Mexico, but why should Mexico City always feel the need to bow to a selfish, uninterested neighbor? If policymakers in Mexico there there is no relationship to salvage and it has no influence over Washington to fulfill its policy objectives, then it should do exactly what's being suggested here.

If choice A (a one-sided NAFTA renegotiation) is painful to Mexico but has no "sellable" trade-off, while choice B (severing a relationship or finding another source of a commodity) is painful to Mexico but offers more freedom of action, which choice should Mexico make? Other countries and trading blocs are still committed to a free trade model and Mexico can fit into that order with them.
 
If the world works together against Trump, his protectionist measure and the economic pressure he thinks he can use to make other countries do whatever he wants, will backfire hard.
Can't wait.
 
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