A new trade struggle with Mexico is shaping up, this time involving Mexico's intentions to revise the North American Free Trade Agreement (NAFTA). The National Corn Growers Association (NCGA) and the U.S. Grains Council (USGC) are urging U.S. Trade Representative Robert Zoellick not to agree to renegotiate NAFTA agreement with Mexico on white corn and beans.
As part of a national farm accord signed by President Vicente Fox earlier this week, the Mexican government is expected to review the current NAFTA provisions for white corn and dry beans. The review will assess mechanisms that may be applied to manage imports of those commodities as tariffs are eliminated under the NAFTA.
"Mexico is the second largest market for corn growers in the United States," said NCGA President Fred Yoder. "Corn exports from the United States have doubled since enactment of NAFTA and we should build upon these accomplishments rather than retreat from trade liberalization."
"We believe renegotiation would be unwise and unproductive for both countries," said USGC Chairman Don Jacoby, "NAFTA is a working agreement that provides benefits to both countries."
Mexican farmers have protested NAFTA agriculture provisions and have erected new trade barriers due to tariff reductions that occurred in January. In a recent report issued by the USTR, the United States pledged to cooperate with Mexico to resolve the trade barriers, but warned, "the United States will not agree to alter or renegotiate long-settled NAFTA provisions."
"With elections for the Mexican Congress approaching, it is natural that domestic pressures from the agriculture industry have an affect on politicians," continued Jacoby. "It would be unwise for the United States to succumb to cross border rhetoric that could harm corn and livestock producers in both countries."
"This is definitely not the time to start renegotiating the corn provisions of NAFTA, especially since the Mexican government currently discriminates against the entry of U.S. high fructose corn syrup into its country," concluded Yoder. "Corn growers will continue to work with the USTR, the U.S. Department of Agriculture and Congress to resolve trade differences with Mexico, but negotiating a safeguard for bulk corn at this time is a non-starter."
National Journal's CONGRESSDAILY reports a lobbyist for a major U.S. agricultural group involved in trade disputes with Mexico says U.S. farm leaders fear that Mexican senators plan to use a May 15 meeting on with members of Congress as an opportunity to get changes in NAFTA.
At a scheduled meeting by Mexican senators at the with members of the Senate Agriculture Committee the Mexican officials may urge U.S. senators to raise issues important to U.S. farmers.
The CONGRESSDAILY article also says an aide at the Mexican Embassy in Washington said the embassy was not involved in arranging the meeting and could not comment on what issues the Mexican senators might raise.
A Senate Agriculture Committee spokesman said the primary purpose of the meeting is to establish a "dialogue" between senators of the two countries, not to discuss the specifics of any changes Mexico may want in the NAFTA.
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