Mexican companies craft plan to sidestep U.S. grain

One of Mexico's largest business groups is working on a bargaining chip ahead of talks to renegotiate the North American Free Trade Agreement - finding alternatives to the United States for grain imports.

The Consejo Coordinador Empresarial, one of the nation's top business chambers, is examining countries such as Brazil and Argentina to add new sources for soy, corn and wheat, according to Juan Pablo Castanon, the group's president. Exports from those countries could help Mexico adjust to the difficulties that a NAFTA renegotiation might present, he said.

'The renegotiation might bring increased costs to imports, and our own exports might be hurt, so we need to find new markets,” he said in a phone interview, adding that the group's efforts are still in the initial stages. The chamber, established in 1976, represents the country's main agricultural, industrial and financial industry organizations, among others.

A move by Mexican businesses to import raw materials from other countries could hit U.S. farmers hard. Mexico is the largest buyer of U.S.-produced corn, spending $2.5 billion in the 2015-2016 season, ahead of Japan's $1.8 billion, according to the U.S. Grains Council.

Mexico has spent $800 million on U.S. corn so far in the current season.

Mexico is preparing to hold talks with Canada and President Donald Trump, who has threatened to withdraw from NAFTA if his partners aren't willing to renegotiate a deal that he blames for destroying American jobs.