FEBRUARY 15, 2023:
Mexico officials issued a new decree this week (Feb. 13, 2023) calling for a ban on imports of biotech corn used for certain purposes, effective immediately. But, the decree also indicated the Mexican government would continue to allow imports of biotech corn used as animal feed while exploring substitutes. Once substitutes are established to satisfy supply needs, all GM corn will be banned.
The National Corn Growers Association expressed serious concern with the accelerated implementation timeline. NCGA President Tom Haag says, “Singling out corn – our number one ag export to Mexico – and hastening an import ban on numerous food-grade uses makes USMCA a dead letter unless it’s enforced.”
NCGA continues to call on the Biden administration to initiate a U.S.-Mexico-Canada Agreement dispute settlement panel regarding the issue. The ban, according to NCGA, would be catastrophic for American corn growers as well as the Mexican people, who depend on corn as a major staple of their food supply.
FEBRUARY 13, 2023:
Doug McKalip, the new agriculture trade boss in the U.S. Trade Representative’s Office, says he’s given Mexico until tomorrow (Feb. 14, 2023) to explain the science behind the country’s planned ban on GMO corn imports.
Market Screener says the response will help the agency decide the next steps to resolve the long-running disagreement over Mexico’s biotechnology policies when it comes to agriculture. The next steps could include escalating the dispute settlement process under the USMCA. If it continues, the dispute threatens to disrupt the billions of dollars worth of corn trade between the United States and Mexico.
McKalip says Mexico rejected 14 agricultural product traits that were submitted to them, and they didn’t provide any justification. “We want to make sure that they do the science, show their work, and make decisions based upon risk assessments,” he says. U.S. officials recently warned Mexican officials that America may take formal steps under USMCA.
FEBRUARY 2, 2023:
Corn growers told Congressional members and their staffs they must hold the line over Mexico’s proposed ban on imports of GMO corn. During a congressional briefing, members of the National Corn Growers Association said if that ban takes effect, it will block most U.S. corn imports into Mexico and be a significant blow to the American economy. Mexico’s president plans to implement a decree banning biotech corn from coming into Mexico in early 2024. The vast majority of U.S. corn is biotech.
“This decree would cut most American growers off from what has historically been our largest export market,” says NCGA President Tom Haag (Hayg). “That’s why U.S. officials must continue to ensure that Mexico lives up to its commitments under the U.S.-Mexico-Canada Agreement.”
NCGA hosted the congressional briefing on the one-year mark from the decree’s effective date. The ban would cause the U.S. economy to lose $73.8 billion over ten years.
JANUARY 2023:
After a speech at the American Farm Bureau’s annual convention, Ag Secretary Tom Vilsack said there will be no compromise when it comes to the Mexican corn situation. The U.S. won’t back down or compromise on its stance against Mexico’s plan to ban imports of genetically modified yellow corn.
Vilsack says the American government is supposed to reply by Jan. 15, 2023, to Mexico’s proposal to delay the ban until 2025. U.S. Trade Representative Katherine Tai has spoken to her Mexican counterpart about the dispute. Speaking to reporters at the AFBF convention, Vilsack said that if Mexico doesn’t agree to withdraw its import ban, the White House will then push the USMCA on trade rules. Vilsack told Mexico’s President Lopez Obrador that he won’t be able to find enough non-GMO corn to import and feed the country’s livestock sector. The larger issue is about a trading system with “less friction,” not more friction.
NOVEMBER 2022:
Mexico appears to be moving ahead with its plan to ban GMO corn imports by 2024. Reuters says Mexico is considering the possibility of direct agreements with farmers in the U.S., Argentina, and Brazil.
Mexico’s deputy agriculture minister says the 2024 ban on GM corn won’t be amended in any way. U.S. yellow corn imports are used primarily for livestock feed in Mexico. Victor Suarez says Mexico will cut its imports of U.S. yellow corn by half when the ban takes effect via increasing domestic production. To fill any remaining gap, Mexico will try to make deals with farmers in other countries to grow non-GMO corn and sell it to Mexico.
“There are many alternatives to importing non-GMO yellow corn from the United States,” Suarez says.
These moves appear to go back on the promise from Mexico’s ag minister that Mexico wouldn’t limit imports of GMO yellow corn from the U.S.
OCTOBER 2022:
A Mexican presidential decree to ban genetically modified corn in 2024 would have severe economic consequences for the U.S. and Mexican economies.
A study from World Perspectives, Inc., says the move will result in a loss of billions for America’s farmers and higher prices for Mexican consumers. The net economic loss for the U.S. corn industry in the first year of the ban will be $3.56 billion. The U.S. ethanol industry, including DDGS, will incur a net loss of $521.5 million after accounting for gains from lower GM corn prices. Overall, the U.S. economy would lose $73.89 billion in economic output.
During a ten-year forecast, the GM corn ban will increase the cost of corn by an average of 19 percent. That will inflate the cost of most foods and other goods for Mexicans. Poultry meat prices will jump by 67 percent because of a 13.7 percent increase in the cost of feed.
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