Mexico: Slight Uptick For Corn
24 March 2008 Policy changes that took place Jan. 1 to fully implement the North American Free Trade Agreement (NAFTA) meant that there is no longer a need for Mexico to import cracked corn. In the past, buyers imported cracked corn as a substitute for traditional yellow corn imports to bypass the quota system under NAFTA’s implementation phase. USDA-FAS alludes to several industry sources which note that the Mexican corn market is already integrated with the US market, because the government expanded tariff-free quotas to meet domestic demand. Although over-quota tariffs were in place, the impact of the tariff quota elimination is expected to be minor, since Mexico aims to continue to be self sufficient in white corn. Yellow corn is preferred for animal feed, and the demand has been increasing due to the dynamic performance of Mexico’s livestock sector.
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