Mexico Seeks Alternate For Wheat Export To Reduce US Dependence The makers of Mexican bread, pasta, and flour-tortilla are seeking alternative supplier of wheat than the U.S., the biggest economy in the world. The major reason is that Mexico is tired of complete dependence on the U.S. Moreover, the trade relations between the two neighbors are in bad shape. Russia Helps With Cheaper Wheat Supplies The top importer of wheat, Mexico, is now considering importing from Russia as it can provide supplies at affordable prices, which help Russia to surpass the U.S. as the top global wheat supplier in 2016. In addition, day by day the U.S. market share is declining, increasing the prices of grains and risking America to lose its prime customer for wheat. If the Mexican government imposes tariffs, there is a risk that prices will further increase. This shift is extremely alarming for the U.S. industry, which has been supplying the vast amount of wheat to Mexica since the 1994 1994 North American Free Trade Agreement (NAFTA). As reported by Reuter, until now, the U.S. wheat export to Mexico has dropped by 38 percent or in value, to $285 million. The CEO of the Wheat Commission in Kansas, Justin Gilpin, said that the Mexican market ought to be an extension of the state’s domestic market. Ditching the U.S., Mexican buyer is more interested in importing from Argentina. In 2017, Mexico imported a test cargo of 33,000 tonnes after its government backed a trade mission of grain buyers to find an alternative to U.S. wheat. The same mission resulted in raising Mexican corn import from Brazil. In the same year, Mexico imported 10 times more corn from Brazil than the previous year. Maybe, now the country is revisiting a page in history and trying to get free from the influence of America, which has pressurized the U.S. to reconsider its tie up with Mexico. The post Mexico Seeks Alternate For Wheat Export To Reduce US Dependence appeared first on OWLT Market.

The makers of Mexican bread, pasta, and flour-tortilla are seeking alternative supplier of wheat than the U.S., the biggest economy in the world. The major reason is that Mexico is tired of complete dependence on the U.S. Moreover, the trade relations between the two neighbors are in bad shape.

Russia Helps With Cheaper Wheat Supplies

The top importer of wheat, Mexico, is now considering importing from Russia as it can provide supplies at affordable prices, which help Russia to surpass the U.S. as the top global wheat supplier in 2016. In addition, day by day the U.S. market share is declining, increasing the prices of grains and risking America to lose its prime customer for wheat. If the Mexican government imposes tariffs, there is a risk that prices will further increase.

This shift is extremely alarming for the U.S. industry, which has been supplying the vast amount of wheat to Mexica since the 1994 1994 North American Free Trade Agreement (NAFTA). As reported by Reuter, until now, the U.S. wheat export to Mexico has dropped by 38 percent or in value, to $285 million. The CEO of the Wheat Commission in Kansas, Justin Gilpin, said that the Mexican market ought to be an extension of the state’s domestic market.

Ditching the U.S., Mexican buyer is more interested in importing from Argentina. In 2017, Mexico imported a test cargo of 33,000 tonnes after its government backed a trade mission of grain buyers to find an alternative to U.S. wheat. The same mission resulted in raising Mexican corn import from Brazil.

In the same year, Mexico imported 10 times more corn from Brazil than the previous year. Maybe, now the country is revisiting a page in history and trying to get free from the influence of America, which has pressurized the U.S. to reconsider its tie up with Mexico.

The post Mexico Seeks Alternate For Wheat Export To Reduce US Dependence appeared first on OWLT Market.

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