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Sleight: US needs to remains a competitive trading partner

The president and CEO of the US Grains Council says the US has to remain a competitive trading partner with Mexico, because the country is starting to shop around.

Mexico has been trying to diversify its trading partners since President Trump threatened to renegotiate the North American Free Trade Agreement.  Earlier this week Mexico’s deputy minister for foreign trade said the country expects to finish negotiations on a trade deal with Argentina by the end of the year.

Tom Sleight tells Brownfield Mexico has the most free trade agreements with countries around the world.  “There’s a lot of Mexican interest in developing an Argentine market for Mexican products,” he says.  “That’s part of what is driving this.”

Should the deal go through – Argentina could gain part of the lucrative grains market in Mexico.

But, Sleight says the US still has a very strong competitive advantage over other countries when it comes to delivery.  “That’s going to be a very tough thing to compete with,” he says.  “We can ship grain there by truck, by rail, and by ship in strong marketing channels that have developed over decades.”

Formal talks to renegotiate NAFTA do not have a specific start date.  Congress requires a 90-day notice before negotiations can begin.

Mexico is the top buyer of US corn and is a top five market in several other commodities.

AUDIO: Tom Sleight, US Grains Council