A trade dispute over corn purchases between Mexico and the United States could indirectly benefit the export of Brazilian sugar. According to consultant Leder Batista, in December 2022, the President of Mexico, Lopez Obrador, reaffirmed the intention to ban imports of white and yellow GMO corn from the United States. “It’s a somewhat controversial move since both countries are part of the USMCA trade agreement. Under this arrangement, Mexicans buy corn from the United States and export their sugar. However, this dispute could favor the export of another Brazilian agricultural commodity, which is sugar,” the consultant assesses. Brazil could take advantage of this dispute between the two countries. “The United States would reallocate part of this sugar quota to Brazil, increasing the volume exported to North America”, Batista points out.
Sources: Jornal Cana/Datamar News