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America’s $1.2 Billion Mexico Milk Trade Is Now at Risk

Posted April 27, 2017

Under Economic Issues, International Trade Issues


(Deena Shanker – Bloomberg News)

With a tweet on Tuesday morning, President Donald Trump told Wisconsin dairy farmers—and the world—that America “will not stand for” the Canadian policies he says are hurting U.S. exports... But his next tweet might have hurt those farmers even more...

Even as the Trump administration jousts with Canada over its latest trade dispute, it might want to keep a closer eye on Mexico, America’s No. 1 one dairy importer. Its southern neighbor, which figures prominently in the U.S. government’s crime and immigration rhetoric, spent almost twice as much money as Canada did on U.S. dairy in 2016. That’s $1.2 billion.

Now it appears Mexico is looking for new trading partners.

In the first two months of 2017, Mexico increased its imports of skim milk powder from the European Union by 122 percent over last year, according to the EU Milk Market Observatory (as first reported by the Irish Farm Journal). Mexico has also been exploring talks with dairy powerhouse New Zealand. That country’s trade minister visited Mexico City in February to discuss a potential trade deal. Click here to read more.