Grains Powerhouse Argentina Could Lose Market Share Due to Vietnam-U.S. Trade Deal, Rosario Exchange Warns

By Kylie Madry

June 6 (Reuters) – Progressing trade negotiations between the U.S. and Vietnam could significantly diminish Argentina’s substantial share of Vietnam’s corn and soymeal import market, the Rosario grains exchange said in a report on Friday.

Argentina is currently Vietnam’s leading grains supplier, accounting for more than 50% of its corn and 65% of its soymeal imports by value over the past five years, the exchange said.

Vietnam is increasingly turning to U.S. farm goods in a bid to avoid tariffs from President Donald Trump, the exchange wrote.

Trump has cited a significant trade deficit with Vietnam, where multinational companies have major production facilities, as motivation for threatening so-called “reciprocal” tariffs on the Asian country.

Vietnam is targeting up to $2 billion in U.S.-sourced agricultural imports, the exchange said, and firms there have signed agreements with U.S. counterparts for an initial $800 million for U.S. corn, soymeal, wheat and dried distillers grains.

This turn toward the U.S. threatens Argentina’s dominant status as Vietnam’s soymeal and corn supplier, which could have consequences for Argentina’s position in other key export markets, the exchange wrote.

Argentina is the world’s top supplier of soybean oil and meal, and the world’s third-largest producer of corn.

“The risk grows for Argentine agriculture,” the exchange said. “The top destination for corn and soymeal exports could flip to U.S. suppliers.”

Argentina’s agricultural exports are key for bringing in foreign currency, which it needs to shore up its reserves.

(Reporting by Kylie Madry; Editing by David Gregorio)