Trump says there’s a ‘good chance’ that Mexico averts tariffs with deal that includes purchase of US farm goods – CNBC

Mexico also ranks as a major buyer of U.S. beef, pork, soybeans and wheat. Mexico, however, has looked to other global suppliers for its soybeans and wheat, especially Argentina and Brazil.

But the U.S. is a major importer of Mexican tomatoes, strawberries and avocados. It has led some U.S. farmers in the Southeast region to complain that Mexico is “dumping” fresh produce into the U.S. market.

“On the import side, there are a number of producer groups who would like protection against Mexico products,” said Glauber. “Florida tomato growers. Sugar producers. Some Southeast specialty crop growers.”

Last year, Florida specialty crop producers urged the Trump administration to negotiate a special anti-dumping provision in the new United States-Mexico-Canada Agreement that would have allowed anti-dumping and so-called countervailing duty cases to be filed. The Southeast growers argued that an anti-dumping provision in a new trade deal would give U.S. farmers more leverage to hold Mexico accountable for not playing by the rules.

Yet some producer groups in California and in other U.S. Western states cautioned against including an anti-dumping provision in the replacement trade pact for NAFTA. They warned it could be used by Canada or Mexico to make a “dumping” case against U.S.-grown seasonal crops such as apples. In the end, an anti-dumping provision was left out of the negotiated USMCA.

After the Trump administration last year imposed tariffs on imported steel and aluminum from Mexico and other nations, Mexico retaliated with levies on $3 billion of U.S. goods, including cheese, pork, whiskey and certain fruits. Still, Mexico retained its position as the top buyer of U.S. cheese in 2018 although the EU has been pushing to increase its sales of cheese to the Mexican market.

Through April, U.S. ag exports to Mexico were up a scant 2% to $6.1 billion, according to the USDA. The weak growth is due largely to a decline in the value of pork exports south of the border. Still, sales of corn, wheat and soybeans were up by double-digit percentage levels, while dairy products were up by 6%.

— CNBC’s Christina Wilkie, Fred Imbert and Kevin Breuninger contributed to this report.