Dom , 17 Dic 2017 · 14:50hs.
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EE.UU.

05.02.2017 08:00  » 

Rice: Vietnam May Have Huge Advantage Over U.S. if Trade Deals Change

“The President has given me instructions to convert the Trans Pacific Partnership Agreements into bi-lateral agreements with all of the countries with whom we do not already have free trade agreements,” said Secretary of the Economy Ildefonso Guajardo.

Fuente: agfax.com |

 According to press reports, the government of Mexico (GOM) may move forward with implementing individual bi-lateral trade deals with many of the countries that participated in the now defunct Trans Pacific Partnership (TPP). These countries include Australia, Brunei, Malaysia, New Zealand, Singapore, and Vietnam.

“The President has given me instructions to convert the Trans Pacific Partnership Agreements into bi-lateral agreements with all of the countries with whom we do not already have free trade agreements,” said Secretary of the Economy Ildefonso Guajardo.

Of these countries, the most sensitive to U.S. rice interests is Vietnam, an unfairly low cost producer of long grain milled rice, and one from whom Mexico has imported rice in the past. Currently the Mexican import duty is 20 percent, but whether immediately phased out, or eliminated over time, its removal will give the Asian producer a huge advantage in Mexico.

This past year, Vietnam exported less than 5,000 MT of rice to Mexico; however when Mexico did not have a 20 percent duty (as in 2014), they exported nearly 70,000 MT.

“This news, along with the talk about renegotiating all or parts of NAFTA, is creating a great deal of uncertainty,” said Brian King, Chairman of USA Rice and of USA Rice’s Western Hemisphere Promotion Subcommittee.

“To date nothing has changed or been affected, but the market is nervous as to what might happen in the future, and Mexico is the largest market for U.S. rice. We are in touch with the U.S. Embassy there and trade partners to get the very latest as this story develops, but I can tell you that anything that disrupts trade between the U.S. and Mexico gives the rice industry pause.

At 85 percent market share, the U.S. is the major supplier of rice to Mexico and Mexico is the largest market for U.S. rice taking some 800,000 metric tons valued at $260 million. Most of the rice exported is in rough form, but there is strong and growing demand for direct imports of long grain milled rice.