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Mexico Approves the USMCA

On Wednesday, the Mexico Senate approved the U.S.-Mexico-Canada Agreement by a vote of 114 to 4. Mexico is the first of three countries to ratify the trade deal. Now, all eyes are on Canada and the U.S. to approve the agreement. An implementation bill has been introduced in the Canadian Parliament. Earlier this week, U.S. Trade Representative Robert Lighthizer said Democratic concerns with labor and environmental provisions in the USMCA can “be sorted out quickly.”

Mexico Dry Bean Sales are Slow

Dry bean traders in the different Mexican markets consider the economy, in general, is very slow. With slow sales, there is therefore more dry bean product in storage than expected. This is not allowing for regular trading flow, and reportedly payments for imported beans have been delayed.
 
Mexico Imports from January to April 2019
  • Mexico’s accumulated bean imports from all origins totaled 35,573 metric tons, with a value of $27,611 ,060 U.S.
  • From these, 31,323 MT were U.S. beans with a value of $23,559,075 U.S.
  • Since January 2019, 18,297 MT of U.S black beans, 9,979 MT of U.S pinto beans and 3,047 MT of U.S white beans have been imported by Mexico.

Steel and Aluminum Tariffs a “Hurdle” in USMCA Chats

Chief Agricultural Negotiator in the Office of the U.S. Trade Representative Gregg Doud confirmed Tuesday that steel and aluminum tariffs are a big hurdle in the U.S. Mexico Canada Agreement discussions. “I can tell you there’s not a day that goes by at USTR someone isn’t having a conversation with Canada and Mexico to figure out how to sort this out,” says Doud.

“This is an enormous priority for us. It’s been challenging and it’s taken more time than I think we would have liked in regards to the new administration in Mexico. The election process is evolving in the U.S. and Canada, which makes things challenging as well.”
 

Mexico Begins New Ag Price Support Program

The Mexican government has launched a new price support program in Zacatecas and Durango. However, the program was initiated later than the long standing price support programs. As a result, producers waited longer than usual to sell beans to participating elevators to obtain price guarantees.
 
Additionally, the U.S. Dry Bean Council has released the Mexico fall/winter harvest projects. Those projections can be viewed at this link.

Weekly Dry Bean Market News

Compared to a week ago, trading activity was slow with very light demand. Contract product is moving steady. Mexican peso per US dollar exchange rate is19.2090.

View the report here.

2019 Bean Congress in the Books

The 2019 U.S.-Mexico International Bean Congress was held February 7-9 in Cancun, Mexico. During the event, seminars, discussions and one-on-one business meetings were held.

The U.S. dry bean industry was able to gather with the Mexican trade to celebrate numerous concurrent events such as:

  • The signing of the U.S. Mexico Canada Trade Agreement (USMCA)
  • World Pulses Day
  • The long standing partnership with Mexican buyers

This year’s attendance was high with over 150 buyers, traders and industry representatives present. During the seminar portion of the Congress, speakers discussed World Pulses Day, new trends with beans and bean-based ingredients, U.S. and Mexico bean production trends and an overview of the Mexican political panorama.

Joe Mauch, Kevin Regan, Tom Kennelly and Tim Courneya represented the Northarvest Bean Growers Association the this year’s Congress.

(Source: U.S. Dry Bean Council)