MUMBAI, 4 Feb (Commoditiescontrol): The U.S. pulse industry breathed a sigh of relief as the Trump administration announced a 30-day delay in imposing import duties on Mexico and Canada. The decision came in exchange for agreements from both countries to strengthen border security, averting immediate trade disruptions that could have significantly impacted U.S. pulse exports. The 25% tariffs, initially set to take effect on February 4, were postponed after Mexico agreed to deploy 10,000 troops to its border to curb illegal migration and drug trafficking. In return, the U.S. pledged to take steps to reduce the flow of firearms into Mexico. Canada, on its part, committed CDN $1.3 billion to bolster border security, appointed a "drug czar" to combat fentanyl shipments, and agreed to designate certain drug cartels as terrorist organizations. This diplomatic move is particularly important for the U.S. pulse sector, as Mexico is the largest market for American beans and a key buyer of lentils. During the 2023-24 marketing year, Mexico accounted for 78% of all U.S. pinto bean exports, 54% of black bean shipments, and 83% of beans categorized as kidney beans (a group that includes pinto, black, kidney, and navy beans). In terms of lentils, Mexico imported around 22,500 metric tons (MT) in both the 2022-23 and 2023-24 seasons, making it the second-largest destination for U.S. lentils after Canada and ahead of Spain. Despite this temporary relief, the global lentil market opened the week with uncertainty due to fears of a broader trade war. While the international field pea market remained relatively stable with light trading activity, attention has shifted to India, where traders expect the government will not extend duty-free import allowances. India, a major player in the global pulse market, is signaling plans to boost domestic pulse production to reduce import dependency and control food price inflation. This move could reshape trade flows, impacting exporters like the U.S. and Canada. Meanwhile, Canadian export data showed mixed trends. According to the Canadian Grain Commission (CGC), 97,200 MT of field peas were loaded for export in December through licensed terminals. This brought the total bulk exports for the marketing year to 1,262,900 MT, marking a 31% increase from the 964,400 MT shipped during the same period last year. However, December’s shipments were down 38% from the previous month and 49% from December last year. For lentils, the CGC reported 137,700 MT were loaded for export in December, a significant rise from just 9,000 MT during the same month last year. However, this was a drop from the 170,900 MT shipped in November. So far, lentil exports for the marketing year have reached 643,000 MT, up from 467,100 MT in the previous season. With shifting trade policies and changing global dynamics, pulse markets remain on edge as they await further developments, particularly from the U.S., India, and Canada. |
