The role of the United States in the global potato and horticultural supply chain extends beyond production. Decisions taken in Washington influence fertilizer costs, seed access, market entry, phytosanitary rules, and trade flows. Growers benefit from soft credit, federally backed insurance, energy subsidies, and marketing support, creating an embedded structure that affects international competition. This policy framework is combined with diplomatic tools, sanitary barriers, and strategic alliances.
A recent example is the United States' purchase of Argentine pesos and a US$20 billion currency swap intended to stabilise Argentina's financial system ahead of legislative elections. The cooperation between Trump and Argentine President Milei reflects the geopolitical value Washington assigns to Argentina and its willingness to intervene financially in an allied market.
Agricultural diplomacy continues to shape trade with Canada and Mexico. Under the USMCA agreement, the three markets remain integrated. In 2021, the United States suspended fresh potato shipments from Prince Edward Island following the detection of a soil fungus, causing losses for Canadian producers and sparking accusations of disguised protectionism. With Mexico, the United States spent years seeking full access for its potatoes beyond the 26-kilometre border zone, a process completed in 2022 after legal disputes. Mutual inspections and quality disagreements continue to influence cross-border trade.
Brazil remains a key part of the regional balance. The United States has imposed 50 per cent tariffs on some Brazilian products. Despite tensions, Trump and Brazilian President Lula have resumed discussions, leaving open the possibility of future cooperation. Brazil's role within the BRICS framework positions it as a counterweight to U.S. policies.
Argentina is central to Washington's engagement in the Southern Cone. Consumption of frozen French fries is expanding across Latin America, and companies have responded. Lamb Weston selected Mar del Plata for a processing plant, citing stability in Argentina's agro-industrial chain, skilled labour, and a location that enables distribution across the region without depending on U.S. trade routes. Northern markets continue to consolidate high-volume production, while southern regions supply quality-focused output.
Analysts note that without regional coordination, Latin American countries will negotiate individually with larger trading blocs. The United States acts collectively with Canada and Mexico, the European Union coordinates through regulatory standards, and China integrates financing and infrastructure. Producers in the Global South may need coordinated policies, shared phytosanitary frameworks, integrated processing capacity, and regional value-added branding to increase autonomy in a system in which Washington sets many of the rules.
Source: potatoPRO
