The inflation rate in Mexico reached a 21-year high at7.6% in April 2022, however, eased in early May. In May, the Mexican government suspended import duties on pork, beef, and poultry through the end of 2022, intending to curb price inflation. This might support pork exports from traditional partners in the Americas and open a gate for EU pork and Brazilian poultry exporters to Mexico.
Pork and beef produced in the US and Canada (including various processed products) can enter Mexico at zero duty under the North American Free Trade Agreement and US-Mexico-Canada Agreement. Meanwhile, Australia exports small volumes of beef skirt to Mexico and remains subject to a 14.6% duty under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. Additionally, Brazilian pork and beef are not eligible for Mexican market, meaning that the main beneficiaries of this policy change for the pork market will be European pork suppliers. Brazil will be the primary beneficiary on the poultry side as imports from other major suppliers, including the US, already enter Mexico at zero duty.
After rising sharply between February and April, Mintec Benchmark Prices (MBP) for pork in the EU fell 6% to reach EUR 1.8/kg between early May and June. Similarly, the Mintec price for chicken in Brazil has been trending downwards since April. The lower prices of pork in EU and chicken in Brazil increases the potential of both the players to export meat to Mexico.