Cheap Corn Makes Mexican Tractor Traders Suffer 05/02/2008

Mexican farmers and tractor traders have recently been protesting the entry of imported corn from the United States and Canada, which, because of its cheap pricing and ready availability, has lead to problems in Mexican farming, and has consequently affected the sales of Mexican tractor traders. On the 1st January 2008, the Mexican government has repealed the tariffs which had previously been placed on imported corn. Many of the protesting farmers are seeking a re-emergence of the 1994 free trade agreement which saw the tariffs initially put in place. Such protests may be supported by Mexican tractor traders whose sales may suffer as a result of the removal of tariffs. U.S. and Canadian grains are in cases subsidized and therefore hold the potential to economically undermine Mexican products, and many Mexican farmers are arguing this does not present them with equal opportunities. This may have a knock on effect for Mexican tractor traders if demand for tractors becomes lower. The Mexican farmers arguing for the reinstating of the tariffs burnt a tractor in protest near a monument situated close to the site of 1910 Mexican Revolution. Despite the government allegedly arguing that Mexican farmers are reaping the benefits of the removal of the tariffs, the Mexican farmers protesting have claimed that this is only when the tariffs are taken into consideration with regards to big businesses, as well as claiming that the livelihood of smaller farms is at stake.

This is not to say that tractor traders in other locations are suffering as a result of low prices of corn. For example, in India, tractor traders are experiencing a high level of demand in tractor sales. This is due to the role played by tractors in projects in the country, such as improvements in infrastructure and transport links in the country. Additionally, tractor traders in other parts of the worldwide tractor trader community have experienced growth in sales as a result of the increased prosperity in some areas of farming.

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