As part of the switch to the south, due to hostility and threats from the Trump administration, the Mexican ambassador in Brasilia has promised to switch from being the biggest importer of U.S. rice to importing rice from Brazilian farmers.
Also, trade talks with Argentina are presaging a Mexican switch to Argentine lemons, which will lead to a ten thousand ton decrease of California lemons sent to Mexico. We reported several weeks ago on a similar change in sourcing corn.
Mike Zuzolo, president of Global Analytics & Consulting said, “My sense is that Mexico would like to have a plan of action ready in case the border import tax takes on a more serious tone from the Trump administration. However, … the blockage and resistance President Trump is feeling on health care is a good indication of how difficult it will be for him to move more aggressively against our trading partners.”
