Tom Vilsack, former agriculture secretary and now CEO with USDEC (US Dairy Export Council), Jim Mulhern, CEO with NMPF (National Milk Producers Federation) and Michael Dykes, International Dairy Foods Association, want to calm the waters with the US’s number one dairy importer, who is opening trade negotiations with several other countries.

President Trump soured relations between the two countries when he said NAFTA (North America Free Trade Agreement) gives unfair advantage to Mexico and encourages US businesses to relocate there.

This comes on top of the president’s stance on immigration, his insistence on building a wall paid for by Mexico and deporting Mexican immigrants. All of this has caused a friction in trade between the two countries.

Mexico is the third largest market for US agricultural exports. In 2015, exports to Mexico stood at just under $18bn.

EU in talks with Mexico

Whether this is just posturing to get a better deal with the US or real negotiations, Mexico is transparent about its desire to find new trading partners with all the leading players lining up to talk with them.

Both the EU and New Zealand have started to discuss bilateral agreements with Mexico.

This leaves the US in a weaker position if they are watching trade talks with the US’s biggest competitors from the sidelines.

The CEOs from the dairy sector hope to make Mexican negotiators understand how much the US values the relationship with Mexico.

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