Photo via the Ministry of Agriculture.

The Ministry of Agriculture announced today that Mexico will buy 30,000 tons of wheat from Argentina next December for the first time ever, following an agreement between both country’s governments.

“This sale is the product of the process of the public and private sectors in both countries that managed to create the industrial conditions for the sale,” stated the Ministry of Agriculture in a press release.

According to La Nación, the decision follows a delegation of Mexican business representatives interested in purchasing Argentine grain visiting in May to discuss trade ties. Mexico is one of the world’s largest wheat importers – importing 4.5 million tons annually – and buys most of its supply from the US and Canada. Mexican officials say they are able to purchase up to 50,000 tons of wheat from Argentina.

According to INDEC, Argentina has been steadily increasing its wheat production. Since a low point of 3,019.4 hectares in 2012, production increased between 2014 and 2015 to 5,031.4 hectares.

Given the Trump administration’s hostility to the North American Free Trade Agreement (NAFTA), Mexico is seeking new markets to ensure it maintains its supply of wheat in the case that NAFTA is renegotiated to its detriment.

Mexico’s pivot to Argentina is also occurring in other commodities including meat and corn. As Argentina increases its agricultural production, observers could expect more agreements between Argentina and Mexico in the near future.