Ripple effect: Mexico’s economy and pork exports may aid U.S. export c
April 26, 2021
Wholesale prices of almost all food commodities in Mexico have increased since the coronavirus crisis hit last year, and for many Mexicans living paycheck-to-paycheck, rising food prices coupled with lost incomes are forcing many to make difficult choices for their protein purchases.
With global food prices set in dollars and the valuation of the Mexican peso continuing to decline, imports have become extremely expensive and there is now widespread speculation that Mexico’s Secretaria de Economia will attempt to halt rising prices by issuing new duty-free chicken “cupos,” a tariff rate quota for any country that does not have a trade agreement with Mexico.
A new wave of cupos for chicken imports will almost certainly mean a greater presence of Brazilian chicken in the market and increased competition for U.S. exports.
See more in the April 26 edition on MondayLine.