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Confrontation with Mexico over Corn Imports Anticipated

11/01/2022

Mexico appears intent on banning importation of GM corn or any corn grown with the application of glyphosate or glufosinate, effective 2024. This action does not have any scientific justification that appears to be the brainchild of President Andres Manuel Lopez Obrador.

 

Although Mexico claims that the ban on GM corn and on herbicides is not a violation of the U.S. Mexico, Canada (USMCA) trade agreement, officials at the National Corn Growers’ Association hold an opposite opinion.  Currently, Mexico imports 15 million tons of corn annually representing at least 20 percent of U.S. corn shipments. Loss of the market in Mexico would have an impact on domestic price.  Mexico indicated that they intend purchasing non-GMO corn directly from producers.  If this approach is attempted, the cost of organic feed would soar and conventional corn, given higher availability, will drop in price.

 

Traders and observers maintain that Mexico will not be able to satisfy requirements for non-GM corn by a combination of importation and increased domestic production.

 

Agricultural groups have requested the U.S. Trade Representative to file a case against Mexico as a potential violation of USMCA and WTI regulations.