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it is currently closed at an exchange rate of 19.30 (xe.com, 2019). Economic forces such as inflation and interest rates directly affect investment into Mexican commerce. The ongoing threat of the U.S-Mexico trade war has created doubt for potential investors. The inflation rate for 2019 fell to 3.95 percent while it was 4.65 percent in the same month in 2018. Although the interest rate has also declined this could lead to favorable growth in investment (OECD, 2019).Political and Legal ForcesU.S companies’ operations and profitability can be impacted due to Mexico’s political and legal environment. Barriers of entry such as the United States proposed tariffs with Mexico, China, and other foreign countries cripple global trade. The North American Free Trade Agreement (NAFTA) was signed in January 1994 however, after 24 years the modernized United States-Mexico-Canada (USMCA) agreement took its place on November 2018. The biggest group of individuals who would be affected if the USMCA agreement was not signed is the agricultural sector. The corn farmers depend on the Mexican market any legal forces would result in approximately an $800 million drop in corn production and a $13 billion hit to farm sector GDP (National Corn Growers Association, 2019). Mexico’s major laws and regulations for agricultural imports are detailed in the FAIRS Annual Country Report. Mexican general labeling requirements mandate labels that are affixed on the package must be in Spanish. There can be additional labels in other languages however the Spanish label must be in a font size equal or
EXPORTING MAIZE TO MEXICO 12larger than other languages. The Spanish label must always be on top of any U.S label. SENSASICA is the Mexican equivalent to the USDA Organic Program and they will accept organic products labeled with the USDA seal (USDA Foreign Agricultural Service, 2018). Amongst the labeling requirements there are also required documentation for U.S exports. The most basic Mexican document is the Pedimento de Importacion. The document must be accompanied by a commercial invoice in Spanish, a bill of lading, documents demonstrating guarantee of payment of additional duties, and documents demonstrating compliance with Mexican product safety (Export.gov, 2019). Sociocultural ForcesCorn is the essence of Mexican culture and society. From its inception corn has been infused in the daily life of Mexican cuisine. Corn is versatile and some of the ways Mexicans use it are by using all parts of the corn in their cooking. The outer leaves are used as a way to wrap tamales, the kernels are used in pozole, or can be ground up into masa dough and made into tacos or tortillas. Corn can be found in every house and establishment from the poorest home to 4-star restaurants. This love and respect for corn has been passed down from generation to generation and will continue to thrive in years to come.